Instructions for main discussion post (Around 250 words)Please, write a discussion post about the...

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Instructions for main discussion post (Around 250 words)
Please, write a discussion post about the below topic/Statement.
Topic/Statement: Even though most believe the framework of all analysis is net income, it is important to understand, analyze, and interpret each component of net income. These components provide insight into company performance as well as predicts the amount and timing of future revenue streams. As a result, the analysis of operating activities is crucial to financial statement analysis.
Explain why an analyst attaches great importance to evaluation of the income statement.
Operating vs. non-operating and recu
ing vs. nonrecu
ing are two distinct dimensions of classifying income. Explain this statement and discuss whether or not you agree with it.
(1 or 2 Citations needed for main post)

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Akash · Accepted Answer

Running Head: FINANCIAL STATEMENT ANALYSIS	1
FINANCIAL STATEMENT ANALYSIS 		2
MAIN DISCUSSION POST
FINANCIAL STATEMENT ANALYSIS
Financial statement analysis emphasizes on three prime analytical and conceptual aspects of decision-making namely investment decisions, financing decisions and dividend decisions. By evaluating financial statements, equity investors and debenture holders can envisage risk of return, growth potentiality and solvency of the firm. An optimum level of liquidity helps the management and suppliers make prudent decisions as regards to meeting operating expenses. Their confidence is maintained if a business firm sustains adequate short-term debt paying capacity. As stated by Sharma (2018),

Instructions for main discussion post (Around 250 words) Please, write a discussion post about the below topic/Statement. Topic/Statement: Even though most believe the framework of all analysis is net...

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