Explain the purpose of financial statement analysis for both external and internal users.

Explain the purpose of financial statement analysis for both external and internal users.

Financial statement analysis is the process of reviewing and analyzing a company’s financial statements to make better economic decisions to earn income in future. Students are required to:

1. Explain the purpose of financial statement analysis for both external and internal users.

2. Identify and describe three common tools of financial statement analysis.

Use academic writing standards and APA style guidelines.

Be sure to support your statements with logic and argument, citing all sources referenced. Post your initial response early, and check back often to continue the discussion. Be sure to respond to your peers’ posts as well.