Accountants focus on creating financial statements, whereas finance professionals mostly use these statements to evaluate a firm and answer questions about its performance. Indicate which financial statement would be the most helpful n answering the questions in the following table. How much cash is a firm generating through operating, investing, and financing activities? How much debt and equity has the firm issued to finance its assets? If compensation for senior management is based on short-term performance of the firm, in the short run the firm is likely to: Overstate its earnings Understate its earnings