Financial statements are reports or records that provide an overview of an organisation’s financial position. There are four basic types of financial statements: balance sheets, income statements, cash‐flow statements, and statements of retained earnings. Assume that a client has asked you to analyse their financial statements and prepare a brief report on the thefinancial potential of the business. The need for financial analysis is arisen due to business’s/organisations decision to take over a small competitor in their field (you may assume the cost). The organisation wishes to determine its future funding requirements and statutory obligations (if any) based on the analysis. Your trainer/assessor will play the role of a manager or a supervisor for this task.
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