income statement analysis forecasts
#fra-introduction
In the typical income statement analyisis one should segregate the results of normal, recurring operations from the effects of nonrecurring or extraordinary items to improve the forecasting of future earnings and cash flows. The idea here is that recurring income is persistent. If an item in the unusual or infrequent component of income from continuing operations is deemed not to be persistent, then recurring (pre-tax) income from continuing operations should be adjusted.
If you want to change selection, open document below and click on "Move attachment"
Income statements considered to be the best indicator of future earnings. As operating expenses do not include financing costs such as interest expenses, income from continuing operations is independent of the company's capital structure.
<span>In the typical income statement this means segregating the results of normal, recurring operations from the effects of nonrecurring or extraordinary items to improve the forecasting of future earnings and cash flows. The idea here is that recurring income is persistent. If an item in the unusual or infrequent component of income from continuing operations is deemed not to be persistent, then recurring (pre-tax) income from continuing operations should be adjusted.
The net income figure is used to prepare the statement of retained earnings.<span><body><html> Summary
| status | not read | | reprioritisations | |
|---|
| last reprioritisation on | | | suggested re-reading day | |
|---|
| started reading on | | | finished reading on | |
|---|
Details