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Financial analysis
The purpose of financial statements is to provide information to all the users of these accounts to assist them in their decision-making. It has to be concerned that most users will only have access to published financial statements.
Interpretation and analysis of financial statements involves identifying the users of accounts, examining the information, analysing as well as reporting in a format which will give information for economic decision-making.
Uses of operating cycle in business
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Scenario: ABC Company sells widgets in three varieties (blue, red, and yellow) but has lost money for the past three years. Competitive intelligence shows the Company's products
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