(a). Juan Marichal believes that the analysis of financial statements is directed at two characteristics of a...

Question:

(a). Juan Marichal believes that the analysis of financial statements is directed at two characteristics of a company: Liquidity and profitability. Is Juan correct? Explain.

(b). Are short-term creditors, long-term creditors, and stockholders interested primarily in the same characteristics of a company? Give details.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...