Sample Solution

Financial analysis is regarded as a vital element of the overall function of finance (Vogel, 2020). A company's accounts and statements contain a great deal of information. Discovering the full meaning contained in the statements is at the heart of financial analysis. Understanding how accounts relate to one another is part of financial analysis. Another part of financial analysis involves using the numerical data contained in company statements to uncover patterns of activity that may not be apparent on the surface. The three main sources of data for financial analysis are a company's balance sheet, income statement, and cash flow statement.