How do you plan to use financial statements in your projected financial statement analysis? Provide rationale for your approach.

The financial statement provides the "raw materials" with which the financial performance of an organisation may be analysed.

The financials ratios not only monitor financial performance, but it also speaks to the quality of performance and serves as a basis to compare one period against the other.

The cashflows help to create a picture of the project's liquidity in each of the forecasted periods.

The Income statement helps to gauge the quality of the earnings per period and the balance sheet shows the economic position of the firm at the time under observation.

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