He should look at the balance sheet.
The balance sheet of a business, also referred to as a "statement of financial position," lists the company's assets, liabilities, and equity (net worth).
Why is a balance sheet important?
- In addition to listing the company's assets and liabilities, a balance sheet serves the purpose of providing interested parties with information about the company's financial position. All investors should be able to use, interpret, and read a balance sheet. A balance sheet might provide information or justification for buying a stock.
- The balance sheet of a business, also referred to as a "statement of financial position," lists the company's assets, liabilities, and equity (net worth). The income statement, cash flow statement, and balance sheet together form the foundation of any company's financial statements.
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