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The focus on financial quantikative information consists of four financial statements: (1) Balance The bolance sheet shows the fm's assets and clains agalest those assets.
The focus on financial quantikative information consists of four financial statements: (1) Balance The bolance sheet shows the fm's assets and clains agalest those assets. In other words, assets are equal to liabilities and daims are listed in the order of when they must be paid. useful lives exceed one year.Liabilities are divided into Slet its shont term and long-terms statements in finance is how managers and investors interpret and use them. A firm's annual report contains both verbal and quantitative information. The Sheot, (2) tecome Statement, (3) Statement of Cash Flows, and (4) Statement of Stockholders' Equity ash and their equivalents, accounts and inventory, while long-term assets are those whose and long-term debt. We cifferentiste betwen total dete and total Sablities A company's total det includes beth Current assets indlude c labilaies Total Sabilities equal Seltp plus the company's "free Wabilities. ri is the difference between current assets and current liabilities, whille Select capital supolied by common stockholders and represents ownership. is equal to current assets less the difference between current labilities and notes payable. [Selis reports en operations over a period of time. Comeanies' operating performances can be comoared by looking at each firm's Ent, often referred to as . A typical stockholder focuses on the bottom Sne of the income statement, Slect The income statement is tied to theethroug e retained earnings account Net income minus paid is eosal to the retained eanings for the year, and this amount is added to the cumalative retained earnings from prior years to obtain the year-end retained earnings balance. Management's go is to masimiae the frm's stock price. The value of any aset, induting a share of stock, is baed an th managers strive to maximice the investors. The Operating activitiles, (2) Long-Term Inveating activities,D)Fancing activties, and () Summan ) the asset is expected to produce. Therefore Selet availabile to investors. The statenent of cash lows shows how mac vestors. The statement of cesh flows shows how machim is generating. It is divided into four parts: (3) quiy during an accounting period are reported the statement of stockholders equity. Changes in stockholders' equity can come from new stock iosu stock repurchases, net income, and ltpad
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