Financial Statement Analysis and Forecasting:
Financial statements are principal means through which financial information is communicated to those outside an enterprise. These statements provides the company’s history quantified in money term.
The financial statements most frequently provided are –
The Balance Sheet:
The balance sheet, sometimes referred to as the statement of financial position, reports the assets, liabilities, and stockholders’ equity of a business enterprise at a specific date.
This financial statement provides information about the nature and amounts of investments in enterprise resources, obligations to creditors, and the owners’ equity in net resources. It therefore help in predicting the amount, timing,and uncertainty of future cash flows.
The income statement, often called the statement of income or earnings, is the report that measure the success of enterprise operation for a given period of time. It provides investors and creditors with information that helps them predict the amounts, timing, and uncertainty of future cash flows.