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Which statement is more valuable to you as an investor when making investment decisions?

Cite the reasons with relevant examples.

When making investment decisions, as an investor, I think the most reliable way to measure the

company's financial status is the income statement because it shows the company's profit and

loss, most commonly known as the P&L statement. This statement gives us direct information

and overview of the company's financial standing, like total revenues, total expenses, and most

importantly, the total net income of the company. Through this, investors can easily evaluate

whether the company is profitable or not. For example, if I want to invest in a company in order

to secure my money, I should first evaluate the company's financial performance and profitability

so that I can determine whether the company or business is profitable. One thing that I think the

most reliable way to measure the company's financial status is the income statement because it

directly views the total revenue, expenses, and total net income of the company. However, there

are other ways to evaluate the company's financial status, like the cash flow statement, but I think

this statement will only be applied internally, like when making business decisions, so that they

could use their cash more efficiently.

Will you invest or not in this company? Justify your answers with relevant examples.

Based on the given financial statement of Walmart Inc., it cannot be denied the fact that it has a

good financial performance and shows a consistent increase in revenue each year, and that is one

of the points for investors to consider. Additionally, I observed that the company's total assets are

equal to its liabilities and equity, in which it is one of the factors to analyzing the financial report

or balance sheet of the company. So I think investing in Walmart Inc. is a good idea to consider.
 2

What is the significance of financial statements for investors?

The financial statement is very significant for the investors as it gives an overview of the

information regarding the financial health of a company. It also provides snapshots of a

company's revenue, expenses, debts, short- and long-term financial obligations, and profitability.

It also helps investors determine and evaluate the company's ability to generate profits and

understand the company's financial standing.