TOPIC-2

FINANCIAL STATEMENT-
ANALYSIS AND INTERPRETATION
FINANCIAL STATEMENT- MEANING AND DEFINITION

- STATEMENT SHOWING FINANCIAL DATA/ INFORMATION

 OBJECTIVES
• INFORMATION TO PRESENT AND POTENTIAL INVESTORS
• INFORMATION ABOUT ECONOMIC RESOURCE AND
OBLIGATION
• INFORMATION THAT ASSISTS IN ESTIMATING THE EARNING
POTENTIAL OF THE BUSINESS
• ANY OTHER RELEVANT INFORMATION
VARIOUS FINANCIAL STATEMENTS
• INCOME STATEMENT
• BALANCE SHEET
• STATEMENT OF RETAINED EARNINGS
• FUNDS FLOW STATEMENT
• CASH FLOW STATEMENT
• SCHEDULES
 FINANCIAL ANALYSIS
• MEANING-
• GOING INTO DEEP
• CONDUCT POST MORTEM
TECHNIQUES /TOOLS FOR FINANCIAL
ANALYSIS
• COMPARATIVE FINANCIAL STATEMENT [PROBLEM FOR EXAM]
• COMMON –SIZE FINANCIAL STATEMENT[ PROBLEM FOR EXAM]
• TREND ANALYSIS
• FUND FLOW ANALYSIS [CHAPTER 4]
• CASH FLOW ANALYSIS [ CHAPTER 5]
• CVP ANALYSIS
• RATIO ANALYSIS[ CHAPTER 3]
 PROBLEMS FOR EXAM
• COMPARATIVE STATEMENT
• COMMON SIZE STATEMENT