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the financial statement showcases the profitability and the liquidity of the business. That is in simple terms how much liquid cash dose the company have to pay back the liabilities and the profitability picture can be depicted by the different profitability ratios like the gross profit and the net profit ratiosThe financial statements reflect the liquidity and profitability of the business in terms of cash and liquidity, the company must pay back the debt, and profit.By making different profit, gross profit and net profit margin.
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