Thesis Abstract

Abstract
Financial statements play a crucial role in aiding effective business management by providing essential information about a company's financial performance and position. This research project aims to analyze the significance of financial statements as a tool for business management. The study will explore how financial statements, including the balance sheet, income statement, and cash flow statement, can be used to assess the financial health of a business. The research will delve into the various financial ratios and metrics that can be derived from financial statements, such as profitability ratios, liquidity ratios, and efficiency ratios. These ratios provide valuable insights into different aspects of a company's operations and financial stability. By analyzing these ratios, business managers can make informed decisions regarding resource allocation, investment opportunities, and overall business strategy. Furthermore, the research will investigate the role of financial statement analysis in identifying trends, strengths, and weaknesses within a company. By comparing financial data over time and benchmarking against industry standards, managers can gain a comprehensive understanding of their company's performance and competitiveness. This analysis can help in setting realistic financial goals, monitoring progress, and implementing corrective actions when necessary. Moreover, the study will highlight the importance of accurate and transparent financial reporting in ensuring the reliability of financial statements. Business managers rely on financial statements to make critical decisions, and therefore, it is essential that the information presented is trustworthy and consistent. The research will explore common financial statement errors and fraud indicators that can compromise the integrity of financial data. In conclusion, this research project will emphasize the critical role of financial statements in aiding effective business management. By leveraging the information contained in financial statements, managers can gain valuable insights into their company's financial performance, make informed decisions, and drive business growth. Understanding how to analyze financial statements and interpret the results is a fundamental skill for successful business management. Overall, this research project will contribute to the existing body of knowledge on financial statement analysis and provide practical insights for business managers looking to enhance their financial management capabilities.

Thesis Overview

Introduction
Success in business is judged on the basis of reasonable profits and good liquidity condition, which are two indicators of favourable business operations. Managers responsible for business success and need containing stream of information about these indicators of favourable business operations. Timely detection of unfavourable factors in business operation may enable management to take correction steps in time to avoid serious consequence of course; information alone does not produce desirable results.

Financial statement provides owners of business with the basic tools for determining how well their operations perform at all times. Many business owners do not realize that financial statement have a value that goes beyond their use as supporting document to loan applications and tax returns.

Owners and manager can use financial statement analysis to evaluate the past and current financial condition of their business, diagnose any existing financial problems, and forecast future trends in the firm’s financial position. Forecasting is valuable in statement analysis for two reasons. Forecast can be prepared to assume that the basic financial facts about a company will remain the same for a specified period in the future.

Forecast is likely to stand if the status quo is maintained or it can give insights into the impact of certain business decisions by calculation the answers to “what if question when testing the consequences of changes are contemplating or that may occur because of changing market conditions or customers taste, for example achieving a greater understanding about the financial interrelationship at work in a business.

Moreover according to Anad (2001) the figures which appear on the financial statement taken in isolation does not make any meaning until they are analyzed. Analysis would show existing and potential relationship, which can be exploited for better management of the entity. Financial statement analysis thus a powerful tool for a firm’s performance analysis and its application must be properly understood and applied be those who are saddles with the responsibility of financial management

1.2 Statement of the Problem

A major source of information for decisions making of an organization is the financial statement. The amount of information that any manager can extract from the statement should be what is adequately understood and comprehended by the manager. This issue of non-comprehension of the financial reports became a problem and could be attributed to technically exclusion of certain information in the reports.

Management decision in no doubt, the most useful and most risky activity of the managers. It is useful when a choice action is arrived at from a well analyzed data. It is risky because the resultants effect of lack of financial statements analysis before decision making is business failure lack of financial statement analysis will make it impossible to compare performance in an organization and also trends and variance will not be variable for management decision. Business forecast will be impeded if financial statements are not analyzed. It is as a result of these problems, that the researcher on the analysis of financial statement as an aid to effective business management.

Objectives of the Study
The objective of this study includes the following:

To examine the effect of analyzing financial statement in the management of champion breweries.
To examine the importance of financial statement analysis to the management of Champion Breweries.
To examine the techniques of financial statement used in assessing the profitability position of the company.
To determine the effects of its analysis in the management of Champion Breweries Plc Uyo Akwa Ibom State.
To examine the problems associated with financial statement analysis in Champion Breweries Plc, Uyo.
Research Questions
The following questions were used raised for the study

Does the financial statement analysis aid the management of the company in making financial decision concerning the company future?
Does financial statement usually disclose adequate and reliable information?
What techniques of financial statement analysis are used to aid management in assessing profitability position of the company?
Are the profit figures disclosed by financial statement enough to portray areas of profitability to management?
What are the problems associating with financial statements analysis?
Research Hypothesis
Ho: There is no relationship between financial statement and achievement of organization goals.