University of Iowa
Financial Statement Analysis (FSA) spells out the financial health of an organization at a given point of time. It is a measure of the financial responsiveness of the organization with respect to its shareholders. The income statement, balance sheet, and cash statement form part of the financial statement. The income statement contains details about different sources of income to the organization because of various business transactions. The balance sheet displays the dynamics of assets and liabilities of the organization. Cash flow statement is the financial document detailing the exchange of cash between a business and the outside world. The paper examines the different components of the financial statement.