Description Is issued once a year by a corporation and contains basic financial statements and ani analysis of past performance and future prospects. Aggregates all cash inflows, which the company receives from its ongoing activities and investment sources, and all cash outflows. Accounts for all revenues and expenses over an accounting period. Has three segments that when analyzed together give an idea of what the company owns and what it owes. Details changes in the capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. Statement or Report Accountants focus on creating financial statements, whereas finance professionals use these statements to evaluate a firm and answer questions about its performance. Indicate which financial statement you would refer to when answering the questions in the following table: How profitable has the firm been? How much of the firm's earnings are left as balance after the firm pays out dividends to its shareholders? Income Statement The annual report is very important for investors, because the information contained in the annual report: helps investors forecast expected earnings and dividends. shows the prices at which each investor purchased the company's stocks and bonds. Statement of Stockholders' Equity