The board of directors of ABC Ltd. Have been provided with the below financial statements for the business (Income statement, Balance sheet, Cash flow statement), they are however unsure of how to use these statements and how they indicate their financial health and potential growth

Question :

The board of directors of ABC Ltd. Have been provided with the below financial statements for the business (Income statement, Balance sheet, Cash flow statement), they are however unsure of how to use these statements and how they indicate their financial health and potential growth

ABC Ltd
Statement 1
For the year ended December 31, 2021
Service Revenue	$ 100,000
Operating expenses	90,000
Net income	A
Statement 2
At December 31, 2021 and 2020
Assets	2021	2020
Cash	$ 5,000	$ 2,000
Accounts receivable	10,000	3,000
Total current assets	B	5,000
Land	30,000	20,000
Total assets	$ 45,000	$ 25,000
Liabilities
Notes payable	10,000	0
Total Liabilities	10,000	C
Stockholders Equity
Common stock	20,000	20,000
Retained earnings	15,000	5,000
Total Stockholders Equity	D	25,000
Total Liabilities and Stockholders Equity	$ 45,000	$ 25,000
2021 Events:
Purchased land for $10,000 cash
b) Borrowed $10,000 on a long-term notes payable

ABC Ltd
Statement 3
For the year ended December 31, 2021
Cash Flows from Operating Activities:
Net income	10,000
Adjustments to reconcile net income to net cash provided by operating activities:
Changes in current assets and current liabilities:
Increase in Accounts Receivable	(7,000)
Net Cash provided by Operating Activities	E
Cash Flows from Investing Activities:
Purchased land	(10,000)
Net Cash used by Investing Activities	(10,000)
Cash Flows from Financing Activities:
Borrowed $10,000 on LT notes payable	10,000
Net Cash provided by Financing Activities	10,000
Net increase in cash	3,000
Cash at the beginning of the period	2,000
Cash at the end of the period	F

Address the question

What are the basic financial statements used in business.

Describe each of the basic financial statements

How important are these financial statements in understanding the company's health.

Using the 3 financial statements provided calculate the values for each of the items labeled A, B, C, D, E, and F.

How effective is using this financial information in evaluating the company's performance and decision making?