accounting to managers 2 discussion

The most compelling reason to analyze financial statements is that it provides useful information to supplement information directly provided in the financial statements. Ratio analysis offers additional information that enhances decision-making ability. Financial ratios are useful in predicting future direction and financial position. In this week’s discussion you will be asked to draw upon your knowledge of financial statement analysis.

Please respond to all of the following prompts in the class discussion section of your online course:

• If you were considering purchasing stock in a company, what financial statement analysis would you perform before making the decision? What would you want to know?
• What would you want to know that financial statement analysis would not be able to tell you?
• If you were the CEO of a business, what would you want to know from a statement of cash flow? What would it tell you about operating activities, investing activities, and financing activities?