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: There are 2 Parts to this assignment.
PART 1: In a 600-700 words APA7 formatted paper (not including title page or references). Do not include the questions verbatim when you 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. In the Assignment dropbox, please attach your paper as a file, do not copy & paste.