Up to this point, the course has been concerned with the preparation of a company’s financial statements, including the income statement, statement of retained earnings, balance sheet, and statement of cash flows. This lesson will look at the ways in which a company analyzes the results of operations. You will learn how a company uses its financial statements to help manage its performance. The lesson will review the three main ways a company analyzes the results of operations: a horizontal analysis, vertical analysis, and ratio analysis.
After completing this lesson, you should be able to do the following things:
By the end of this lesson, make sure you have completed the readings and activities found in the Lesson 9 Course Schedule.