Running Header: REPLY TO NATASHA FRANKLIN

Jarrett Davis Reply to Natasha Franklin BUSI 530

REPLY TO NATASHA FRANKLIN

Franklin (2012) did a great job breaking down the functions of various financial statements. Natasha and I are in agreement that each statement provides different vital information to shareholders. She noted that the current health of a business is best found on the balance sheet, and the economic strength of a company can be found in the amount of retained earnings. Lastly, she noted that companies create the most value for shareholders by letting them be involved in business operations Investors analyze financial statements in order to make investing decisions about companies frequently. The stability of the discount rate can affect both shareholder value and stock prices (Schulze, Skiera, & Wiesel 2012). In addition to a thorough financial analysis, many investors are examining customer growth, and customer lifetime value metrics. Investors are paying attention to the contribution customers make to profits, and the amount of new business generated annually. Currently more companies are disclosing such information to become more transparent to investors. A false balance is an abomination to the Lord, but a just weight is his delight (Proverbs 11:1). We should honor god, live justly, and let God provide for us.

REPLY TO NATASHA FRANKLIN References Schulze, C., Skiera, B., & Wiesel, T. (2012). Linking Customer and Financial Metrics to Shareholder Value: The Leverage Effect in Customer-Based Valuation. Journal Of Marketing, 76(2), 17-32.