The biggest surprise to me was the break-even analysis, but
it wasn’t overwhelmingly surprising. It makes sense that there’s a decision-making
tool that tells how many units need to be sold in order to figure out when a
company is in the clear.
What kind of confused me was how the ratio analysis could be
measured with a vertical or horizontal analysis. How does one analysis tell you
the strength and weaknesses, while the horizontal analysis only shows you whether
it’s decreasing or increasing?
I guess if I had two questions, it would be like the ones I would
ask about the ratio analysis. How does one analysis tell you the strength and
weaknesses, while the horizontal analysis only shows you whether it’s
decreasing or increasing?
I don’t think there was anything the author was wrong about.
The budgeting process makes a lot of sense. The balance, income and cash-flow
statements make sense to me.
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