Homework

Homework

The following are the answers to the questions regarding the financial statement analysis of the firm and the importance of different ratios while understanding the financial health of the company. The answers of the questions are as following`:

The three things required by the financial analysis include the trend analysis, the common size statements and the ratio analysis. The trend analysis provides the comparison of previous record of the company, common size statement provides an internal and external analysis of the firm and ratio analysis provides the analysis of the financial items on the financial statements. This analysis also provides the comparison ...