Chapter 18, Problem 18.2BE

(a)

To determine

Analysis of Financial Statements: Financial statements are the summarized representation of the financial status of a company. The financial statements include the balance sheet, the income statement and the cash flow statement. The analysis of the financial statements is helpful to the financial decision makers and the users. The analysis of the financial statements means to review the statements and to analyze the different ratios, so that better economic decisions for the company can be made.

To explain: (a) The three tools of financial analysis.

(b)

To determine

To explain: (b) the three types analysis on the current assets of Company S.