Discussion 1-Use of Financial Statements

Please respond in your own words with no paraphrasing, quotes or journal entries and answer each question separately. No bullet answers and use complete sentences.

1.) You are a bank reviewing the financial statements of a corporation.

Excluding ratios, what information would you look at on:

a. the income statement,

b. balance sheet

c. statement of cashflow

to help you determine whether to lend money to the company?

2.) You are an investor trying to decide whether to invest in a company's stock.

Excluding ratios, what information would you look at on:

a. the income statement,

b. balance sheet

c. statement of cashflow

to help you determine whether to invest in the company?

Please answer each question separately and again no ratio analysis.