TABLE CONTENTS
APPROVAL
DECLARATION
DEDICATION
.
iv
ACKNOWLEDGEMENT v
LIST OF TABLES x
LIST OF FIGURES xi
ABBREVIATIONS AND ACRONYMS xii
ABSTRACT xiii
CHAPTER ONE 1
INTRODUCTION 1
1.0 Introduction 1
1.1 Background of the study 1
1.2 Statement of the Problem 3
1.3 Objectives of the Study 3
1.3.1 General objective 3
1.3,2 Specific objectives 4
1 .4 Research Questions 4
1.5 Scope of the study 4
1.5.1 Content Scope 4
1.5.2 Geographical scope 4
1.5.3 Time Scope 4
1.6 Significance of the study s
1.7 Conceptual framework 5
vi
CHAPTER TWO .7
LITERATURE REVIEW 7
2.0 Introduction 7
2. 1 Financial Statements 7
2.1.1 Statement of Comprehensive Income 7
2.1.2 Statement of Changes in Equity 8
2.1.3 Statement of Financial Position 8
2.1.4 Statement of Cash Flow 8
2.1.5 Financial statements can be prepared interminably or annually 9
2.1.6 Financial Statement Analysis 10
2.1.7 Ways to improve business decisions making through using financial statement ... 13
analysis 13
CHAPTER THREE 16
METHODOLOGY 16
3.0 Introduction 16
3.1 Research design 16
3.2 Population of the study 16
3.3 Sample size 16
3.4 Sampling procedure 16
15 Research instruments 16
3.5.1 Questionnaire 17
3.5.2 Interview method 17
3.5.3 Document review 17
3.6 Data Collection and analysis 17
3.6.1 Datacollection 17
VII
3.6.2 Validity and Reliability 17
3.6.3 Data processing and analysis 18
CHAPTER FOUR 19
DATA PRESENTATION AND INTERPRITATION 19
4.0 Introduction 19
4.1. Demographic characteristic of the respondents 19
4.1.1 Gender of respondents 19
4.1.2 Age distribution of respondents 20
4.1.3 Education level of respondents 20
4.1.4 Number of years worked in the organization by respondents 21
4.2 To identify the usefulness of financial statements analysis in business decision
making at leaf tobacco Uganda limited 21
4.2.1 Financial statements are frequently in the way of reviewed 21
4.2.2 Financial statements have helped to link different departments 22
4.2.3 A profitability level of the organization is determined from financial statements. 22
4.2.4 The balance sheet provides liquidity ratios that show monetary worthiness of the
company 23
4.2.5 Financial statement analysis determines the company’s health and stability 24
4.3 To assess the decision making process that is enhanced by the financial statements at
leaf tobacco Uganda limited 24
4,3.1 Decision of the company’s management is based on various sources such as
financial reports and budget summaries 25
4.3.2 Decision making process is the existence of quality information from financial
statements 25
4.3.3 Financial decision making enables corporate leadership to analysis various
investment opportunities facing the company 26
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4.3.4 Business decisions of the company keep changing depending on financial
statements of that period 27
4.3.5 Decision made from financial statements shows efficient in performance 27
4.4 To establish the relationship between financial statements and business decision
making at leaf tobacco Uganda limited 28
4.4.1 Financing decisions of the company is based on financial statements in that period. 28
4.4.2 Investors often use financial ratios based on information from financial statements. 29
4.4.3 Financial statement shows business performance in specific period 29
4.4.4 Financial statements affect the business decision making in the organization 30
CHAPTER FIVE 31
DISCUSSION, CONCLUSION AND RECOMMENDATION 31
5.0 Introduction 31
5. 1 Summary of findings and discussion 31
5. 1 .1 The usefulness of financial statements analysis in business decision making at leaf
tobacco Uganda limited 31
5.1.2 The decision making process that is enhanced by the financial statements at leaf
tobacco Uganda limited 32
5.1 .3 The relationship between financial statements and business decision making at leaf
tobacco Uganda limited 32
5.2 Conclusion 33
5.3 Recommendations 33
5.4 Areas for further study 34
REFERENCES 35
APPENDICES 37
APPENDIX I: QUESTIONNAIRE 37
ABSTRACT The purpose of the study was to analyze the effect of financial statements on the business deci sion making at leaf tobacco Uganda limited. The study focused in identifying the usefulness of financial statements analysis in business decision making, assessing the decision making process that is enhanced by the financial statements and examining the relationship between the financial statements and business decision making. The study adopted the quantitative research methodology employing a cross sectional research design. A population of 41 was selected from some selected departments of leaf tobacco Uganda limited using stratified simple random sampling. The findings of the study revealed a significant and positive relationship between financial statements and business decision making, The study recommended that leaf tobacco Uganda limited should adopt strong policy measures on the elements of financial statements which are link of different departments, a profitability level of the organization risk and the balance sheet provides liquidity ratios that show monetary worthiness of the company management and all internal controls to be observed for better finan cial performance.
