FINANCIAL STATEMENT ANALYSIS

This text guides the readers to matching financial information and business activities through various analyses over a set of financial statements. The contents drive to understanding the non-financial managers¿ contribution in terms of currencies. Accordingly, the managers can measure performance, identify and resolve the problems, decide any actions, and conduct remote control over the business activities based upon the financial alerts.Part one discusses the conceptual relationships between business activities and accounting reports. This section provides an overview of management concepts applied in business organizations. This section also comes with examples of simple financial statements the trading and manufacturing industries adopt.Part two discusses the practical analysis of financial statements showing operational feedings in terms of business liquidity, profitability, activity, and leverage. This section is equipped with the formulas and their applications to do such an elaboration. The chapter ends with an example of exercise by quoting financial statements set of a company listed on the Indonesia Stock Exchange.