For additional information please look at the previous questions I've posted, those have the numbers you might need for this. Thanks.

Answer the following questions: After the end of the 1st Quarter, the five friends approach a sixth friend with an opportunity to join them in the business. She would simply purchase a pro-rata share from each of the five initial investors making them all equal partners. Unfortunately, she does not know much about accounting and has asked you answer the following questions. Your answers are to someone that does not understand accounting at all so please keep that in mind when answering. If you use any accounting terms you must explain it in layman's terms as well. Answer questions from a conceptual perspective, I don't need specific numbers unless you are using some as examples or pointing out a specific line item. Quality of answer is more important than quantity of words. In what statement do I find the items the company possesses and how much of it is owed to creditors? Explain this statement in Laymen's terms and how does it relate to evaluating a firm's value. What statement shows me the company's ability to produce incremental value during a period of time for its shareholders? Explain this statement in Laymen's terms and how does it relate to evaluating a firm's value. Can we calculate the market value of a company directly from these statements? Why or why not? Assuming Quarter 1 profit performance can be replicated for the remaining 3 Quarters, what would be the return the company provided to the owners on their specific investment? Assuming this return could be replicated for the foreseeable future and the new potential investor requires a return on her investment of 20%, would she accept this investment? Why is there a difference between the cash the company generated from operations and their profits for the period? How does this information complement each other