The purpose of this work is to use accounting information in analyzing the financial position of a firm. The work was written after a careful research and review of accounting information, the users and the uses and its application in analyzing the financial position of a firm taking chemical and allied product (CAP PLC) as a case study.
The researcher was inspired by the preponderance of business failure in the preponderance of business failure in the economy, most of these have been due to wrong analysis, interpretation and application of financial statements that is the balance sheet and the profit and loss account, for the purpose of through coverage of the topic under discussion. This study comprises of five chapters. The first chapter dealt with an introduction of the crucial issues, chapter two covered a review of related literature on the subject, and chapter three is on research methodology used in the study both primary and secondary data collection. The case study focused on the chemical and allied product plc. Also the historical background of the company was highlighted. The descriptive method of research was largely employed in this study and the financial reports of the chemical and allied product from 1993-1997 were the main source of data complementary sources of data from textbooks, journals, interviews and direct observation were also employed.
Chapter four focused on data presentation and analysis of findings. Data were collected, computed, analyzed, and presented using tables, charts and time series analysis. The research findings revealed that chemical and Allied product consider all financial ratios computer.
Chapter five dealt with summary of dings, recommendations and conclusion on completion of this study among other things that chemical and allied product plc should conjure to make use of toward ratios in analyzing the financial position of their firm since it use obviously had to improve overall performance in the company.
TABLE OF CONTENT
CHAPTER ONE
CHAPTER TWO-
LITERATURE REVIEW
BOARD 10
STANDARDS COMMITTEE 12
METHODS AND BASES 13
CHAPTER THREE-
RESEARCH DESIGN AND METHODOLOGY
CHAPTER FOUR-
ANALYSIS AND INTERPRETATION OF DATA
REPORT OF CAP PLC. 47
REPORT OF CAP PLC. 50
REPORT OF CAP PLC. 54
REPORT OF CAP PLC. 57
RATIOS (SUMMARY) 60
CHAPTER FIVE-
Financial statement can be defined as a means of communicating to interesting parties, information on the resources obligation and performances of the reporting entity. The financial statement consists of balance sheet, profit and loss statement or income statement, notes on the accounts source and application of funds or cash flow statements, value added statement and 5 years historical financial summary.
Every business entity should provide information about its activities because the stakeholders, such as shareholders, bondholders, bankers, lenders suppliers, employees, management, trade contacts, government, financial analyst and advisors, all need to monitor how well their interest are being served. They rely on the periodic financial statement of business enterprises to provide the basic information on the profitability of the business. The financial position of a firm is very important to know if they are making expected turnover. It is also important
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