Financial Management: Analysis of Financial Statements and Ratios

This report provides a comprehensive overview of financial management, encompassing key aspects such as cash flow control, capital structure determination, and the appropriate use of funds. It delves into the significance of financial statements, including the income statement, balance sheet, and cash flow statement, explaining their interrelationships and the insights they offer. The report further explores the application of financial ratios in assessing company performance, covering areas like budget analysis, profitability, operational efficiency, liquidity, and risk identification. It includes an income statement and balance sheet for the year ended December 31, 2020, alongside an analysis of the company's current performance, highlighting turnover, profitability, and liquidity metrics, and offering recommendations for improvement, such as enhancing customer satisfaction and optimizing cost management.