Financial Statements
Financial statements consist of three (3) criteria: income statement, balance sheet, and statement of cash flows. Discuss each one. Be specific. Include all you have learned about each criterion from your readings in Module 4 (chapters 11-13) in your discussion.
understudies. Given the expected worth of such figures propelling scholastic achievement and hence impacting results like maintenance, wearing down, and graduation rates, research is justified as it might give understanding into non-mental techniques that could be of possible benefit to this populace (Lamm, 2000) . Part I: INTRODUCTION TO THE STUDY Introduction The country is encountering a basic lack of medical care suppliers, a deficiency that is supposed to increment in the following five years, similarly as the biggest populace in our country's set of experiences arrives at the age when expanded clinical consideration is essential (Pike, 2002). Staffing of emergency clinics, centers, and nursing homes is more basic than any time in recent memory as the enormous quantities of 'people born after WW2's start to understand the requirement for more continuous clinical mediation and long haul care. Interest in turning into a medical caretaker has disappeared as of late, presumably because of the historical bac
Sample Solution
The income statement is a financial report which provides an overview of the company’s performance over a given period. It typically consists of revenues, expenses, gains and losses that occurred during that timeframe (Ormiston & Friedlan). The primary purpose of this statement is to inform investors about the company’s sales figures as well as its total profit or loss at any point in time. This gives them insight into how successful a business has been operating and whether or not it is meeting its goals.
The balance sheet is another key component of financial statements and acts as a snapshot of the company’s assets, liabilities and shareholders equity at any one point in time (Ormiston & Friedlan). This document helps to identify what resources are available for use while also making it easier to calculate the net worth of the organization by subtracting all liabilities from all assets. The information provided here allows investors to assess how much value their money would be getting should they decide to invest in this particular firm.
Finally, there is the statement of cash flows which documents all cash inflows and outflows over a certain period (Ormiston & Friedlan). This includes items such as investments made by individuals or institutions along with information on dividends paid out if applicable. Furthermore, it also contains details regarding purchasing inventory materials from suppliers; selling merchandise; paying salaries; etc., essentially providing an accurate picture of where money was coming from and going during that specific period. All three criteria combined give potential investors everything they need to know about how profitable an organization may be now or in future so it can be seen why these reports are so important for any business wishing to secure capital.