Tag Archives | Financial Statements

Analysis of Financial Statements: 4 Methods | Financial Management

The methods used in analysis of financial statements are as follows: 1. Comparative Financial Statements 2. Common-Size Statements 3. Trend Ratios 4. Ratio Analysis. Method # 1. Comparative Financial Statements: Comparative financial statements are statements of financial position of a business designed to provide time perspective to the consideration of various elements of financial position embodied in such statements. Comparative [...]

By |2017-10-09T08:51:45+05:30October 9, 2017|Financial Statements|Comments Off on Analysis of Financial Statements: 4 Methods | Financial Management

Classification of Ratios | Business | Financial Management

The ratio analysis is made under six broad categories as follows: 1.  Liquidity Ratios 2. Leverage Ratios 3. Asset Management Ratios 4. Profitability Ratios 5. Operating Ratios 6. Market based Ratios.  Category # 1. Liquidity Ratios: The liquidity ratios measure the liquidity of the firm and its ability to meet its maturing short-term obligations. Liquidity is defined as the ability [...]

By |2017-10-09T08:51:45+05:30October 9, 2017|Financial Ratios|Comments Off on Classification of Ratios | Business | Financial Management

Problems on Cash Flow Statements (With Solution) | Financial Management

Here is a compilation of top nine problems on cash flow statements along with its relevant solutions. Problem 1: The bank balance of a business firm has increased during the last financial year by Rs.1,50,000. During the same period it issued shares of Rs.2,00,000 and redeemed debentures of Rs.1,50,000. It purchased fixed assets for Rs.40,000 and charged depreciation of Rs.20,000. [...]

By |2017-10-09T08:51:37+05:30October 9, 2017|Cash Flow Statement|Comments Off on Problems on Cash Flow Statements (With Solution) | Financial Management
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