•These are agreements where 1 party agrees to buy
a commodity at a specific price on a specific future dateand the other party agrees to sell the
•Goods are actually delivered under forward
•Forward contract is a tailor made futures
contract that is not traded on a organized exchange.
•Unless both parties are morally and financially
strong, there is a danger that 1 party will default on the contract, especially
if the price of the commodity changes markedlyafter the agreement is reached.
Financial statement analysis can provide clues to underlying conditions that may not apparent from individual financial statement components.
Significant business decisions are frequently made using one or more of the analytical tool. Here illustrate a number of analytical tools that help business decision maker obtaining business objective.