Analysis and Interpretation of Financial Statement as a managerial Dissertation

Analysis and interpreting of Financial Statement as a managerial tool for Decision Making - Dissertation practice sessionMostly, accounting tools are the most effective in decision-making process and gives a good benchmarking to datum. To analyze pecuniary position of the firm, the leader of the corporate analyses its balance sheet, this gives the statement regarding the financial position and a gauge to the substantiality in economic act. Moreoer, they may get these trends through an analysis of the profit and loss statements-income statements. It gives them a life-sustaining decision making tool which determines how effective impart their short term and broad term transactions in the long run determine the companys profit potential. Moreover, they may analyze the capital flow of the firm because it will sustain them to comprehend the currency inflow of the company, out flows and how payments are make in relation to liquidity of the organization. Mostly, it will analyze the operating activities, investments, and financing cash flows. Actually, this will help the management to determine the amount of losses a business incurs. Lastly, from the firms equity cash flow analysis, corporate managers will help in knowing the capital structures of the firm and how it is related to the performance of the business. In fact, capital structure will indicate the various sources of funds in line with long term and short term operating activities. Hence, the managers may end up reorganizing some initiating activities such as acquisition and mergers. Moreover, they may get to comprehend other sources of funds like internal funding and kept up(p) earning, common or preferred stocks, consequently, they will have helped the management to establish adequate dividend for payments in for each one share and still keep the companys state healthy. Literature Review In this... done the process of analyzing financial statements, the will be determination on adequate inform ation regarding the financial sources and the obligations they tally to the firm. Additionally, it will give a detailed account of and reliable information regarding the financial performance of the firm, which includes how sound, is the finance of the firm. In addition, it will give enough information on from the results of business operations in the cadence range given. Besides, useful information concerning the financial condition of the business like how it involves movement of resources to and from its business will be derived. Lastly, it will give the information that will be helpful in giving an military rating of the performance earnings from the invested resources and hence the managerial ability to forecast will be made stronger booster cable to an over all improvement in business.Research MethodologyThese include what can be achieved. It thusly includes the following.1.Interviewing the finance department2.Distributing questionnaires among other working members in this organization in different departments for them to fill in3.Interviewing and distributing questionnaires to those supplying raw materials and those buying the firms product.4.Testing the various software and hardware on their compatibility to the current working conditions of the firm5.Reviewing the former statement of finance and writing a report over the same.