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Financial Statement Analysis Part 1


Financial Statement Analysis

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									Financial Statements Analysis

Part 1 : Introduction Financial Statements Analysis

Financial statement is a collection of data organized according to logical and consistent accounting
procedures. Account data that had made in journal it will be continued and will be used at financial
statement. Result of financial statement analysis is capability of corporate in period time which
contained information about financial position, profit-loss account information and cash flow

A. Type of financial statements

1. Balance sheet

Balance sheet use for describe financial position about financial capital, debt and asset in corporate. A
balance sheet is often described as a "snapshot of a company's financial condition" Of the four basic
financial statements, the balance sheet is the only statement which applies to a single point in time of a
business' calendar year

2. Profit or loss statement

Profit or loss statement is a company’s financial statement that indicates how the revenue is
transformed into the net income. Net income is income received from sale of product either service
before expenses, interest, tax and amortization are taken out.

3. Cash Flow Statement

Cash flow is the movement of cash into or out of a business, project, or financial product. (Note that
"cash" is used here in the broader sense of the term, where it includes bank deposits.) It is usually
measured during a specified, finite period of time. Measurement of cash flow can be used for calculating
other parameters that give information on the companies' value and situation. Cash flow can e.g. be
used for calculating parameters.

B. Comparing

Summary from financial statement will be process to identify financial ratio in corporate. Financial ratio
is comparing financial statement summary from another corporate or another period of time. In this
case, corporate wants to compare must have same input account method and core business before it
want to compare. Input account method is method that record input and output goods in factory, there
is two kinds of method LIFO and FIFO.

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