3. FINANCIAL STATEMENT ANALYSIS & FINANCIAL RATIOS

1.Explain the three perspectives from which financial statements can be viewed.

2.Describe common-sized financial statements, explain why they are used and be able to prepare and use them to analyse the historical performance of a firm.

3.Discuss how financial ratios facilitate financial analysis and be able to compute and use them to analyse a firm’s performance.

3. FINANCIAL STATEMENT ANALYSIS & FINANCIAL RATIOS