Learning Goal: I’m working on a business question and need the explanation and answer to help me learn.
Financial statements provide critical information to business owners and executives as well as external constituencies, such as banks and governmental entities. These financial statements are often analyzed using ratios. Summarize key ratios she would use to analyze financial statements, what they tell us, and why we prefer ratios over absolute numbers. In addition to the assigned readings, there are three optional videos listed in the resource section of the course and any or all of them may help with this assignment. Instructions: Write a tutorial for interns that the company frequently hires that describes the three key financial statements, balance sheet, income statement (P and L), and cash flow statement. List and explain at least five key ratios that are commonly used in the analysis of financial statements and explain how they are calculated and why they are important. There should be at least one ratio for each of the three key financial statements. Explain why ratios are often used in the analysis of financial statements rather than absolute numbers. Requirements: Use the appropriate format for a paper, including title page, table of content, and references. The tutorial should be comparatively short, five pages, not counting references, title page, and table of content is a good number. Quality always trumps quantity. If you can address all the requirements of this assignment in less than five pages or if you need additional space that is acceptable. Do not introduce unnecessary fluff or cut out relevant material just to meet the page count. References are important. You will have researched the financial statements and ratios that are explained in your paper. The sources you have used need to be appropriately cited.