Interpretation of Financial Statements

Financial Statement

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Interpretation of financial statements..........................................................................................3
Income statement........................................................................................................................3
Balance sheet...............................................................................................................................4
Cash flow statement....................................................................................................................5
CONCLUSION................................................................................................................................7

INTRODUCTION
Financial statement this term define as those reports which is formulated for the purpose
of interpreted position of organization by showing balance of asst and liability of organization.
This includes balance sheet, incomer statement as well as cash flow statement. To understand
relevance of financial statement New Age Consultancy Services had been taken. This is UAE
based organization which provides consultancy services to those entrepreneur who run or wants
to establish their business in medical, oil or food sector. This report has been formulated for
define relevance of financial statement by interpreting balance sheet, cash flow and income
statement of New Age Consultancy Services in effective manner.
MAIN BODY
Interpretation of financial statements.
Financial statements consider as essential business documents. With the help of theses
statements manager as well as external stockholders able to recognize market position of
organization. Financial statement help in evaluating earning capacity of organization for
particular period of time. New Age Consultancy Services successfully run its business in market
sector by managing their financial statement in systematic manner. With the use of formulation
of theses financial statement internal as well as external parties able to analysis its performance.
Following are their interpretation of financial statement of New Age Consultancy Services
(Abernathy Guo, Kubick and Masli, 2019).
Income statement
Profit and loss statement is define as document which formulate for the purpose of
finding out net profit and loss an organization able for specific period of time. It includes all the
essential business expense which required to run business operations of New Age Consultancy
Services as well as all the source of earning which help in increases cash inflow of business
organization. With the use of income statement manager able to recognize their tax liability as
well as those items which may cause of incurring more expenses.
New Age Consultancy Services successfully run its business in consultancy business
they provides best kind of consultancy services to those entrepreneur who newly start their
business in medical , oil & gas or food and beverage sector. They able to generate 2.09 AED in 3
consecutive years. Which showcase that organizat6ion not able to increase their sales rate within