1.

Income stahement, balance sheet, cashflow and statement of shareholders equity

2. Investors: They use financial statements to assess the financial health and
profitability of a company before deciding to invest.
Creditors and Lenders: They use these statements to evaluate a company's
ability to repay loans.

Employees and Unions: They might use financial statements to gauge the
company's profitability and stability, which can influence negotiations for
salaries, benefits, and job security.

3. The decision to declare a dividend is based not only on retained earnings

but also on the company's current cash position, future cash flow projections,
debt levels, and overall business strategy. If a company were to pay out its
entire retained earnings as a cash dividend, it might leave the company with
insufficient funds for operations, future investments, or debt repayments

4. The Statement of Financial Position shows what a company owns and

owes at a specific date. It's like a photo of the company's finances on that day.

The Income Statement shows the company's earnings and expenses over a
time period (like a year).
5. While financial statements are audited to ensure accuracy, investors
should still be cautious. This is because auditors can only check for errors or
fraud within the information provided to them. Also, financial statements are
based on estimates and judgments which can vary. So, it's always good for
investors to do their own analysis as well
6. The Income Statement shows the company's earnings and expenses over
a period, which affects the company's net worth (or equity) shown on the
Statement of Financial Position. So, the results from the Income Statement get
added to the 'equity' section of the Statement of Financial Position at the end
of the period.
7. Inflation can make the Statement of Financial Position less useful because
it doesn't adjust for the decreasing value of money over time. This means
assets purchased long ago are shown at their original cost, not their current
worth, which can distort the true financial status of the company.
8. The Statement of Cash Flows shows how a company gets and spends its
cash, revealing its ability to cover expenses and debts, which isn't directly
shown in the Income Statement or Statement of Financial Position.
9. The Statement of Cash Flows has three sections: Operating Activities,
Investing Activities, and Financing Activities. The payment of a cash dividend
would be shown in the Financing Activities section.
10. Free cash flow is the money a company has left after paying its operating
expenses and capital expenditures. It's important for leverage buyouts
because it's the cash that can be used to repay the debt taken on to buy the
company.
11. Interest expense costs a firm less than the actual expense because it's tax-
deductible, reducing the company's taxable income and therefore its tax
liability. On the other hand, dividends are paid out of after-tax profits and are
not tax-deductible for the company, so they cost the full amount of the
outlay.
12. Current : AP,PE,INVENTORY, AWP,AR,MS

Non current: RE,P/E,CS,BP,CEP,PS

13.

1. Sales
2. Cost of Goods Sold
3. Gross Profit (Sales - Cost of Goods Sold)
4. Selling and Administrative Expense
5. Depreciation Expense
6. Operating Profit (Gross Profit - Operating Expenses)
7. Interest Expense
8. Earnings Before Taxes (Operating Profit - Interest Expense)
9. Taxes
10. Earnings After Taxes (Earnings Before Taxes - Taxes)
11. Preferred Stock Dividends
12. Earnings Available to Common Stockholders (Earnings After Taxes -
Preferred Stock Dividends)
13. Shares Outstanding
14. Earnings Per Share (Earnings Available to Common Stockholders /
Shares Outstanding)

14 INCREASE: increase in notes payabel, decrease in prepaid expense,

increase in accrued expense
DECREASE: increase in acc receivable, increse in investments, decre in acc
payable, incre in inventory, dividend payments,

No effects: depre expense

15.
Statement of Financial Position:

1. Retained Earnings (Stockholders' Equity)

2. Accounts Receivable (Current Assets)
3. Common Stocks (Stockholders' Equity)
4. Capital in Excess of Par Value (Stockholders' Equity)
5. Bonds Payable (Long-Term Liabilities)
6. Notes Payable (Could be Current Liabilities or Long-Term Liabilities
depending on the due date)
7. Inventories (Current Assets)
8. Accrued Expenses (Current Liabilities)
9. Cash (Current Assets)
10. Plant and Equipment (Fixed Assets)
11. Marketable Securities (Could be Current Assets or Long-Term
Investments depending on the company's intent)
12. Accounts Payable (Current Liabilities)
13. Income Tax Payable (Current Liabilities)

Income Statement:
2. Income Tax Expense
8. Net Income
9. Selling and Administrative Expense
14. Sales
15. Operating Expenses
18. Interest Expense