RSM219H1 Lecture Notes - Trend Analysis, Current Liability, Current Asset

• School: UTSG
• Department: Rotman Commerce
• Course: RSM219H1
• Professor: Alexander Edwards

Document Summary

Based on the data gathered, informed decisions are made. We can use the figures for one year to compare with the figures of another year, for example, for expenses, revenue, sales, liability and so on. We can analyze a company for internal and external purposes. For internal purposes we can observe trends for these figures, which we can use to improve our business. We can observe trends from these figures, which we can use to improve our business. Bankers and large creditors would analyze the company"s figures to determine their ability to repay loans. They want to see the trend in growth, income, and net worth, to determine if it"s a worthwhile venture. Labour unions examine the profit of the company and compare this with the salaries the employees receive. Analysis of comparative financial statements page 659. This is done by comparing a company"s financial data for two or more years e. g. 1996 to that of 1998.