1. Discuss the tools that you have learned for analyzing financial statements. Be sure to discuss...

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Finance

1. Discuss the tools that you have learned for analyzingfinancial statements. Be sure to discuss what information is foundon the Income statement and Balance sheet, and how this informationcan be used to determine the financial health of acompany.
2. You have a friend who tells you that they are aconservative investor. They would like your advice on choosing 2stocks to invest in. What 2 stocks would you recommend and why? Besure to discuss risk, the Expected return for the portfolio, andhow that compares with the actual returns.

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You have asked two unrelated questions in the same post I will answer the first one Please post the other question in a separate post Q 1 Financial reporting is the way companies show their performance to outside world The objective behind financial statement analysis is to use the companys financial statements other relevant information to make economic decisions Such an analysis is used to evaluate a companys past performance current financial position and project companys ability to earn profits and future cash flows so that economic decisions like whether to invest in the companys securities or whether to extend bank credit to the company can be taken Financial statements are the different formats which have been prescribed by the law accountancy to be used for the purpose of financial reporting Each format communicates a separate aspect of the business Different Financial Statements are 1 Statement of Financial Position Balance Sheet 2 Statement of Earnings Income Statement 3 Statement of Cash Flows 4 Statement of change in Shareholders Equity Information is found on the Income statement and Balance sheet and how this information can be used to determine the financial health of a company Sl No Statement Information Use to determine the financial health 1 Income Statement or PL statement or Statement of See Answer

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