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It is also a way for a company to track its earnings and losses of past years. It can be used to asses the effect of company trends and see how they may have affected the company whether positive or negatively. Looking at the managers annual report helps to determine some of the reoccurring factors that have affected the financial statements and give clues on what can be done to avoid potentially dangerous financial events in the future. The reports also come in handy when having to refer back to companies financial statements when being audited. Financial reports can be also is used to determine what the company’s expected future shares will be sold at...
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