While each of the financial statements is likely to aid in any business decision, it is often the case that a particular financial statement may be best suited to help in a particular decision. Consider each decision below independently:

a. You are trying to determine whether a particular firm is a good investment. You understand that share price increases are impacted heavily by a company's earnings potential.

b. You are employed in the lending department of a large bank. You are trying to determine if you should lend to a potential customer. If you do make the loan you are especially concerned that the company will have sufficient collateral in the event that it is unable to repay the loan.

c. You wish to invest in a firm that provides you with a steady source of income. You especially want a firm that pays out a large part of its net income as dividends.

d. You are trying to determine if a particular firm will have sufficient cash flow in order to keep expanding without relying too heavily on external sources of financing.

Required 

Determine which of the financial statements contains the most useful information to help in your decision. Explain what information you used from each statement to help you make your decision.