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This gives you details about how To judge just how a business is relocating. The economical statements are given for a specific time period and submitted on a particular day. The cash flow statement provde the benefits for your running and non running intervals even though the stability sheet gives the money status with the summary of a economical time period. Due to the fact administrators are keen to grasp whether or not the business is progressing in a favorable or unfavorable way, there must be a comparison among the figures of the existing yr and previous years. To help you to make such a comparison, a comparative analysis of financial statements is required.
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The trend percentages of product sales revenues and net revenue are calculated. In these types of calculations and comparisons, the data for a variety of decades is calculated wherever the main calendar year is held as the base and based upon this base, percentages of other yrs are calculated with regard to each merchandise. So, it helps to inform you about The proportion of rise or slide For each and every item in relation to base year.
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