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Creditors use finanical statement analysis because it makes it easier for them.
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General approach to financial statement analysis?
Generally,there are two approaches to financial statement analysis,one the is the traditional approach where use of ratio analysis is applied and all information for analysis will be gathered from balance sheet and income statement.In recent times trend analysis and common-size statement has been used.The second is the modern approach where both internal and external business environment are taken into consideration.The approach is futuristic as opposed to traditional approach. The financial statement may be also analyzed horizontally or vertically,across industry,in macro(in aggregate manner) and also in the firm either top down or bottom up.
What are the benefits of financial statement analysis?
financial statement analysis through the use of ratios helps us understand and interpret information contained in financial statements. the ratios computed can be compared with the industry averages and a rational investor can then tell whether a firm is performing well or poorly compared to other firms. did this help?
What is a mathematical tool financial managers use to assess the financial strengths and weaknesses of their firm?
ratio analysis
What can use your statement for us bank?
As proof of your financial transactions
What can you use your statement for US Bank?
As proof of your financial transactions
Describe a balance sheet income statement retained earnings statement and statement of cash flows How does a company use these financial sta?
To check on the financial position of the company eg: payables and receiveables
What types of analyses use case study data?
Case studies are used for the following analyses: industry analysis; product/service analysis; financial analysis; and management analysis.
How might creditors use this information that contained in financial statements?
To improve the company's performance in other to maximize shareholders wealth
What is automated financial analysis?
1. Financial Analysis refers to an assessment of the viability, stability and profitability of a business, sub-business or project.It is performed by professionals who prepare reports using ratios that make use of information taken from financial statements and other reports. These reports are usually presented to top management as one of their bases in making business decisions.2. Automation is the use of control systems such as computers to control processes, reducing the need for human intervention.SO, automated financial analysis is using computers with control systems (an expert system with rules) to analyze financial information.HOW DO YOU DO THIS? There is a program called ProfitCents that performs automated financial analysis. ProfitCents is a web-based application that allows users to input an income statement and balance sheet to generate a text write-up of the financial performance of a person, business, or non-profit organization.
Is there software for personal financial analysis?
Yes there are several types of software for personal financial analysis. First, you need to figure out what you EXACTLY want to analyze. For example, do you want a report card of your financial position? Or, do you need to figure out how much of a house you can afford with your current budget. There are A LOT of other things you should analyze too, just use Google for some general information about "personal financial analysis." One thing I talk a lot about is ProfitCents. ProfitCents is a web-based software application that, at its core, does complicated financial analysis. There are several modules in ProfitCents like non-profit financial analysis, for-profit business analysis, and personal financial analysis. The ProfitCents tool for personal analysis is called "My ProfitCents." This application can provide you with a written explanation of your finances. It's easy-to-use and can be accessed from any computer with internet.
Is there such thing as non-profit organization automated financial analysis?
Yes. And also non-automated financial analysis for NPOs. But there is a way to use computers/expert systems for financial analysis for both for-profit and not-for-profit financial analysis. Sageworks makes a program called "ProfitCents for Non-profits" that does just that. Just enter your financial information from your NPO into the program and a narrative text report is generated. https://www.profitcents.com/USEN/sampleinformation.aspx?report=nonprofit
Solution of Analysis and Use of Financial Statements by Sondhi and White 3rd edition?
inventory method
