The analysis of financial information refers to the process of the critical examination of the financial information contained in the financial statements in order to understand and make the decisions regarding the operations of the firm. There are four kinds of analysis namely; external analysis‚ internal analysis‚ horizontal analysis and vertical analysis. The external analysis is done by outsiders who do not have access to the detailed internal accounting records of the business firm. When it
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Financial statements‚ also known as financial reports‚ record the financial activities of a business in short and long term. The four financial statements are: balance sheet‚ income statement‚ statement of retained earnings‚ and statement of cash flows. A balance sheet reports the assets‚ liabilities‚ and net equity on a company. An income statement reports income‚ expenses‚ and profits on a company. A statement of retained earnings shows a company ’s changed retained earnings. The statement
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QUESTION 1 i. Current Ratio = Current Assets/Current Liability = $ 14‚651‚000/$ 19‚639‚000 = 0.750 ii. Quick Ratio = (Current Assets – Inventory) / Current Liability = ($ 14‚651‚000 – $ 6‚136‚000) / $ 19‚539‚000 = 0.436 iii. Total Assets Turnover = Sales/Total Assets = $ 167‚310‚000/$ 108‚615‚000 = 1.540 iv. Inventory Turnover = COGS/Inventory = $ 117‚910‚000/$ 6‚136‚000 = 19.216 v. Receivable Turnover = Sales/Account Receivables = $ 167‚310‚000/$ 5‚473
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Conclusion This Project has been very useful to me because I learned how to prepare cash flow statements and ratio analysis. This has improved my knowledge on financial statements which is very useful in business and commerce ever day. The work I did in this project has helped me to understand the techniques‚ applications and usefulness of financial statements to understand the performance of a particular company or enterprise without much difficulty and also understand how to prepare them in future
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A. Published financial statements are prepared to satisfy the needs of the different users of accounts‚ of which investors form part. While the statements provide useful information to investors‚ they are not without limitations. The usefulness of using financial statements and its limitations are discussed below. Usefulness of published financial statements Financial statements provide information about the net worth of a business at a specific point of time and its trading performance during
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be helping us understand financial statement analysis in a much broader way. It will also help us understand the implications of financial statement analysis to the management. This report will contribute additional knowledge on how to analyze the financial position of a company to determine if it is earning or losing. II. OBJECTIVES 1. Know and explain the various ways financial statements are analyzed. 2. Know and explain the objectives of financial statement analyses. 3. Know
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Definition & Meaning: The combined financial statements of a parent company and its subsidiaries. Definition of ’Consolidated Financial Statements’: Consolidated financial statements are the combined financial statements of a company and all of its subsidiaries‚ divisions‚ or suborganizations. Explanation: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries‚ they enable you to gauge the overall health of an entire
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TITLE PAGE ROLE OF FINANCIAL STATEMENT IN INVESTMENT DECISION MAKING. (A CASE STUDY OF FIRST BANK OF NIGERIAN PLC) BY AMEDU‚ MERCY A. ACC/2008/502 A RESEARCH PROJECT SUBMITED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE BACHELOR OF SCIENCE (B. SC) DEGREE IN ACCOUNTANCY. FACULTY OF MANAGEMENT AND SOCIAL SCIENCES‚ DEPARTMENT OF ACCOUNTANCY‚ CARITAS UNIVERSITY AMORJI NIKE ENUGU [ AUGUST‚ 2012 CERTIFICATION It is hereby certified that the research work
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(2004-2008) Course Title: Managing Financial Resources Course: MSc. Finance Date: 11th January 2010. TABLE OF CONTENT Executive Summary This report shows the analysis of the financial performance of Centrica Plc‚ one of the top energy business providers in UK. Based on my analysis from this report I can conclusively state that: Centrica Plc has an upper hand in the energy and gas market than it s competitor; Scottish Power. Centrica Plc’s turnover was very high in
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A PROJECT REPORT ON ―ANALYSIS OF FINANCIAL STATEMENT BY USING THE TECHNIQUE OF RATIO ANALYSIS” FOR ULTRA TECH CEMENT LTD AT KOVAYA‚ AMRELI‚ GUJARAT SUBMITTED TO TILAK MAHARASHTRA UNIVERSITY IN PARTIAL FULFILLMENT OF 2 YEARS FULL TIME COURSE MASTER OF BUSINESS ADMINISTRATION (MBA) Submitted By: FURKAN Y. KAMDAR (Batch 2008-10) Guided By: Prof.R.GANESHAN MAHARASHTRA COSMOPOLITAN EDUCATION SOCIETY’S PAI INTERNATIONAL CENTRE FOR MANAGEMENT EXCELLENCE CAMP PUNE-411001 1 Maharashtra Cosmopolitan Education
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