Managers within the firm, as well as the firmâ€™s owners and lenders, keep track of the firmâ€™s performance by reviewing its financial statements – income statement, balance sheet, and statement of cash flows.
Â· What is the purpose of the income statement? Identify the major types of expenses that are shown on the typical income statement.
Â· 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.
Â· What are the three different accounts that comprise the ownersâ€™ equity (also known as stockholders’ equity) section on a typical corporate balance sheet?
Â· What is a statement of cash flows? Describe the three standard sections contained in a statement of cash flows.
PART 2: Complete both the balance sheet and income statement exercises in the attached Excel file and submit as a file. Note: the file is auto submitted to Turnitin and will result in high score. Please disregard the score.
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