n this assignment, you will review an article of your choice related to this module’s readings. Topics Covered · Evaluating Business Plan · Prepare Sales Forecast · Evaluate Financial Statements · Use...

ARTICLE REVIEW
The article deals with the evaluation of financial statements and the fact that entrepreneurs often
do not evaluate the financial statements to the extent required or else they would end up
generating incremental cash by reviewing their credit policies which would allow for ready
conversion of the receivables into incremental cash. This incremental cash can be deployed by
the business in a plethora of ways which would enhance the value created for the shareholders
and primarily the entrepreneur who has the majority stake more often than not. The obvious
question arises as to why the entrepreneurs do not leverage the low hanging fruits (Biery, 2013).
The most obvious answer is that the entrepreneurs are busy with taking more critical and urgent
decisions related to the business which is quite true for startups which are essentially dependent
on crucial decision making by the founders. Additionally, not many founders come from
financial backgrounds and thus they do not understand the importance of balance sheet. As a
result, most of the entrepreneurs limit themselves to whether profit is generated or not. However,
this narrow evaluation of financial statements is clearly incorrect and myopic. Thus, it is required
that a thorough evaluation of the financial statements consisting of income...