Your best friend knows that you are currently taking an accounting class, and he comes to you for some advice. He is interested in using his savings to purchase stock in a public corporation. He downloaded the annual report for two retail companies. He has the following questions about the two retail companies:

• What is typically included in each statement?
• Why do the statements appear in the following order?
  • Income Statement
  • Retained Earnings Statement
  • Balance Sheet
  • Cash Flow Statement
  • What is the definition of debt and equity (what are some examples of liability accounts and equity accounts)?
  • What are two examples of debt transactions for a retail corporation?
  • What are two examples of equity transactions for a retail corporation?
  • What are some reasons why a corporation would obtain cash from borrowed funds from a bank versus cash from selling stock to shareholders?

Thank you beforehand and have a great rest of your day.

(this is all one answer, please answer them all or don't answer at all)