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Analysing performance through ratios
Ratios are an effective way of analysing financial statements. A ratio is 2 figures compared to each other and can either be in absolute terms or in % terms.
When analysing performance by the use of ratios it is significant to use comparisons. A single ratio is meaningless and is only of use when compared with other ratios, competitors and over time.
Roxanne invested $560,000 in a new business 7 years ago. The business was expected to bring in $8,000 each month for the next 26 years (in excess of all costs). The annual cost of
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how to solve balance sheet?
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