ANALYSIS OF FINANICAL STATEMENTS AS AN AID TO MEANINGFUL INVEST DECISION MAKING

(A CASE STUDY OF INVESTMENT FIRMS IN ENUGU STATE)

ABSTRACT

            The purpose of this research project was to find out how financial statement analysis service of our aid to meaning decision by investment firms in Enugu state.  Financial statement analysis are used by investment firms to make their investment decisions.  They are also used by management to make their decisions.  Some of the ratio commonly computed by investment firms are profitability ratios, liquidity ratios.  Market value ratios leverage ratios and ordinary share ratios.        This research project was embarked on because most investment firms do not implement meaningful decision that will enhance their meaningful opportunities.  Moreover, most investment firms do not study investment opportunities as to understand the risk associated with investment proposals as to make meaningful decision based on that before investing their resources.  The methodology used in this work include subheadings like research decision, sampling procedure, data collection and method of data analysis as well as statistical tool of analysis.       The method of research design that was adopted in this study is the sample survey through the administering of questionnaire to investment firms.  I was discovered that making investment decisions using financial statements analysis would very significantly with the profitability of the investment firms.This is so because using chi-square to test our hypothesis.  We discovered that the tabular value of 3.841 is less than our calculated value of 7.815.       We equally accepted the second test in the alternative hypothesis which stats that “there is significant relationship between decision computing with chi-square (X2) we had 3.841 while the tabular value is 3.841. Thirdly, we also accept our alternative hypothesis in our third hypothesis which states that “There is significant relationship between investment decision and investment profitability because from calculated X2 we had 9.483 in the tabular value.Lastly, we made recommendations to both investors and management in investment firms on how best to utilize financial ratios in making meaningful investment decisions.

TABLE OF CONTENTS

CHAPTER ONE

1.0              INTRODUCTION

1.1       Statement of Research problems

1.2              Purpose of the study

1.3              Research questions

1.4              Statement of Hypothesis

1.5              Significance of the study

1.6              Scope and limitation of study

1.7              Operational definition of Terms

CHAPTER TWO

2.0              Review of related literature

2.1       Review of financial statement

2.2              The profit and loss Account or income statement

2.3              Notes to the financial statement

2.4              Balance sheet

2.5              Statement of source and application of fund

2.6              Objectives/usefulness of financial statement

2.7              The need for Analysis of financial statement

2.8              Ratio analysis

2.9              Users of Analysis of Financial statement

2.10          Limitations of financial ratios analysis

CHAPTER THREE

3.0              RESEARCH METHODOLOGY

3.1       Research Design

1.2              Sampling  procedure

1.3              Data collection

1.4              Questionnaire

1.5              Data Analysis Technique and statistical test

CHAPTER FOUR

4.0              PRESENTATION, INTERPRETATION AND ANALYSIS OF DATA

4.1       Questionnaire analysis

4.2              Statistical test of the hypothesis

4.3              Testing hypothesis

CHAPTER FIVE

5.0              SUMMARY OF FINDINGS, RECOMMENDATION AND CONCLUSION

5.1       Summary of findings

5.2              Recommendation

5.3              Conclusion

SAMPLE QUESTIONNAIRE

            BIBIOGRAPHY

CHAPTER ONE

1.1       PREAMBLE

In recent times there has been a rapant growth of towns and cities in this country. This growth has been accompanied with an ever increasing physical social and the technological changes as well as complex Urban Pattern of development.

This fast development with its attendant sprawling effects on the original settlement and town out skirted always cause some land use congestion. Personal and political pressures etc. within and around the area involved.

In 1976, Owerri became the capital of the then creates Imo State. Almost immediately,  the original settlement which were more or less residential / agricultural areas became engulfed with the fast sprawling development in Owerri.

However the morphology of these land activities in the area was observed not be the function of only the original settlement patten, but also a function of the government policies so in relation to the development of the area. These policies so in relation to the development of the area. These policies and their subsequent implementation in no small measure, contributed to the Owerri Urban with their resultant effects on the indigenous other inhabitants of the area, as the existing facilities in the area.

1.2       STATEMENT OF THE PROBLEM

The main problem of this study was to examine and evaluate the physical, social and economic effect of land use activities in its present location in Owerri Urban and recommend solution to the problems identified, because there has been series of criticism against the manner by which land was allocated to people in Owerri Urban

1.3       AIM AND OBJECTIVE OF THE STUDY

This research work aimed towards recognizing the existing land use situation in Owerri Urban and thus high lighting the implications and results of previous development programmes and their implications. This will then severs as basis for formulating a more functional and efficient planning programmes for the area.

THE OBJECTIVES ARE

1.         To evaluate the advantages and disadvantages of the allocation procedures.

2.         To identified the achievements and shortcoming of the procedure.

2.         To suggest possible means of implementing better land used and allocation procedure.

1.4              POSSIBLE RESEARCH HYPOTHESES

The postulation of this study was that conflicts of interest often arise between political planners and the physical planners in the planning and executive of land use activities therefore and allocation procedure in Owerri is defective.

1.5       RESEARCH DESIGN AND METHODOLOGY

In this study, case study research method was to be used. Important information were get through the use of primary and secondary sources like interviews questionnaires observation, journals and books on related topic. These will be distributed to Estate surveyors, lawyers, town planners, civil servants and residents of government layout. Data collected will be analyzed statistically with percentage and chi – square..

1.7       SIGNIFICANCE OF STUDY

The significance of study was to serve as a guide to land experts v12 Estate surveyors, lawyers etc. on the land for efficient utilization of the available land in Owerri urban. It will also help in educating the public. On the various taken by such commute to use and maintain the zoning ordinances, for uniformity in the development process of the capital city.

1.8       DEFINITION OF SOME IMPORTANT TERMS

LAND USE:- Land itself is a genetic term that include the physical soil and all improvement on it such as plants, building e.t.c. the use to which any parcel of land is put to accordance to the various human activities is known as Land use.

MORPHOLOGY:     Structure  of an activity or element

SPRAWL:     Urban sprawl is the irregular development of cities without apparent plan to the east, west, north and south.

URBAN:        A town/city—which supply a wide rang of good and service to it’s country side.

TERMS AND CONDITIONS

Using our service is LEGAL and IS NOT prohibited by any university/college policies

You are allowed to use the original model papers you will receive in the following ways:

1. As a source for additional understanding of the subject

2. As a source for ideas for your own research (if properly referenced)

3. For PROPER paraphrasing ( see your university definition of plagiarism and acceptable paraphrase)

4. Direct citing ( if referenced properly)

Thank you so much for your respect to the authors copyright.

For more project materials

Log on to www.grossarchive.com

Or call

+2348130686500

+2348093423853