Define the purpose of these three key financial statements and answer the questions related to these statements:

a.Income statement

i.Are common dividends paid out of a corporation's pretax or after tax earnings?

ii.What happens to the portion of net income not paid out in dividends?

b.Balance Sheet

i.What are the three components of the balance sheet?

ii.

c.Cash Flow Statement

i.There are three key activities of a corporation shown on the cash flow statement: operating activities, investing activities & financing activities. Which one in your opinion is key to the long-term viability of the firm?