Estella Osage publishes an online travel magazine. In need of cash, the business applies for a loan with National Bank. The bank requires borrowers to submit financial statements. With little knowledge of accounting, EstellaOsage, astockholder, does not know how to proceed.

1.	What are the four financial statements that the business will need toprepare?
2.	Is there a specific order in which the financial statements must be prepared?
3.	Explain how to prepare each statement. For number one, the options are: Balance sheet, Income statement, Statement of capital position, Statement of cash earnings, Statement of cash flows, Statement of financial profit, and Statement of retained earnings. For number three, the options are: a.Each asset account is listed separately and then totaled. Cash is always listed first. b.Each dollar amount is calculated by evaluating the cash column on the transaction detail. c.Each expense account is listed separately from largest to smallest and then subtotaled if necessary. d.Financing activities include cash from the issuance of common stock and payment of cash dividends. e.Investing activities include the purchase and sale of land and equipment. f.Liabilities are listed separately and then totaled. Liabilities that are to be paid first are listed first. g.Net income is calculated as total revenues minus total expenses. h.Operating activities involve cash receipts for services provided and cash payments for expenses paid. i.The beginning retained earnings is listed first and will always be the ending retained earnings from the previous time period. j.The ending cash balance must match the cash balance on the balance sheet. k.The header includes the name of the business, the title of the statement, and the date, listed as a period of time. l.The header includes the name of the business, the title of the statement, and the date, listed as a specific date. m.The net income are added to the beginning retained earnings. n.The stockholders' equity section includes common stock and ending retained earnings from the statement of retained earnings. o.The dividends are subtracted from retained earnings. If there had been a netloss, this would also be subtracted. p.The revenue accounts are always listed first and then subtotaled if necessary. q.This statement must always balance. Assets = Liabilities + Equity This is the hardest question on the HW, I just need help with this one.