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Managers within the firm, as well as the firm’s owners and lenders, keep track of the firm’s performance by reviewing its financial statements – income statement, balance sheet, and statement of cash flows.
Instructions:
PART 1: In a 600-700 words paper (not including title page or references), respond to the following:
What is the purpose of the income statement? Identify the major types of expenses that are shown on the typical income statement.
What is the purpose of the balance sheet? Identify the major types of assets and the claims of creditors and owners shown on the typical balance sheet.
What are the three different accounts that comprise the owners’ equity (also known as stockholders’ equity) section on a typical corporate balance sheet?
What is a statement of cash flows? Describe the three standard sections contained in a statement of cash flows.
APA7 and Turnitin are required. Include a minimum of 2 references.
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