Learning To Analyze "6The Big 399 Financial Statements Accountants prepare financial statements to summarize the information from an organization's business transactions for a variety of stakeholders, the groups that have a stake in the success and outcomes of a business. Many business failures may be directly linked to ignorance of the information "hidden" inside these financial statements. Business managers and owners use this information to aid in internal planning and control, and for external purposes such as reporting to the Internal Revenue Service, stockholders, and other interested parties. With the information from the Income Statement, the Balance Sheet, and the Statement of Cash Flows, ratio analysis calculations can be used to evaluate an organization's financial health, such as measuring its profitability and its solvency. For each item listed below, select the financial statement that the item represents. 1. Assets = Liabilities + Owner's Equity 2. Revenues - Expenses = Net Income or Net Loss Vet Change in Cash 4.An organization's explanation of cash inflow and cash outflow. 5.An organization's "snapshot" of financial position. 6.An organization's "bottom line" shows the overall profit or loss after taxes. 7.Information provided on this statement in three categories: Operating section, Investing section, and Financing section 8.Information on this statement allows for calculating a ratio called "Earnings Per Share" 9.Information on this statement is available on a current and a long-term basis 11 1 Profit Margin = Net Income / Sales 11. Current Ratio = Current Assets / Current Liabilities 12. Debt to Total Assets = Debt (Assets-Equity) / Total Assets (Click to select)