Prompt:Managerswithin the firm, as well as the firm’s owners and lenders, keep track of thefirm’s...

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Prompt:Managerswithin the firm, as well as the firm’s owners and lenders, keep track of thefirm’s performance by reviewing its financial statements - income statement,balance sheet, and statement of...

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Prompt:

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 thisassignment.

PART 1: In a XXXXXXXXXXwords 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.

chapter-1-zsatk0bh.pdf chapter-10-uuln0ydr.pdf chapter-12-u1knomik.pdf

Answered 2 days After Nov 08, 2022

Rochak · Accepted Answer

Income Statement
The financial statement which gives detailed information on the company’s income and expenditures is called the income statement of the company (Stern 1997).
Purpose
An income statement is one of the most important financial statements, as it helps in doing the following:
· Display the details of income and expenditure of the company
· Determine if the company is making a profit or loss
· Provides a detailed view of all the income and expenditure that the company is making
Another use of an income statement is that it helps the investor to analyze the profitability of the company to determine if he/she wants to invest in the company or not.
Major types of expenses
Overall, an income statement provides a detailed overview of all the expenses which are incurred by a company but talking about the major expenses which are part of the company’s income statement are:
· Cost of goods sold: All the expenses which the company incur in acquiring the goods of the company come under the cost of goods sold section of the company
· Operating expenses: Operating expenses are all the expenses related to the operating activities of the company
· Selling and Administrative expenses: This includes all the expenses related to selling, like advertising, and administrative expenses like depreciation
· Financial expenses: Any financing-related expenses come under this section, like the interest expenses
· Any extraordinary expenses
· Non-operating expenses
Balance sheet
A detailed view of the company’s financial standing, i.e., the company’s assets and liabilities are something which the balance sheet provides (Friedman 1975).

Prompt:Managerswithin the firm, as well as the firm’s owners and lenders, keep track of thefirm’s performance by reviewing its financial statements - income statement,balance sheet, and statement of...

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