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Financial analysis or economic analysis can be referred to an audit of stability, viability and profitability of a business enterprise or an organization as a whole or a particular project that it has undertaken. It is performed by the expert professionals who prepare the reports using information taken from the company’s financial statements. These reports are used as the chief and important tool in making business decisions and are usually presented to the top Management. So, in the world of academics and the professional world, financial statement analysis has great value.
On the basis of these reports, management can take any one of the possible decisions: Continue or discontinue part of its business interest or its primary operation, acquire, rent or lease certain equipment and machinery, make or purchase certain materials to manufacture its product, to increase its working capital issue stocks or negotiates for a bank loan and also make decisions regarding lending or invest capital.
There are four basic financial statements that are used in all companies and industries – the balance sheet (reflects the company’s assets and liabilities), the income statement (gives the information on the company’s income, expenses, profits and losses over a period of time), the statement of retained earnings (shows the changes in the company’s earnings) and the statement of cash flows (reports on the cash flow activities, mostly in operating, investing and financial activities).
In short, it allows the management to make an informed choice regarding the overall operation of a business enterprise or a company. Our financial statement analysis Assignment Help Services will be the best assignment assistance you are looking for. Needless to say, commitment is our word that goes with you when we work together and we guarantee the best in the industry in terms of 100% satisfaction.
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Objective behind any research is to fill a gap in the body of knowledge that already exists in the field of your study.