week 1 evans

Managers within the firm, as well as the firm’s owners and lenders, keep track of the firm’s performance by reviewing its financial statements - income statement, balance sheet, and statement of cash flows.

· What is the purpose of the income statement? Identify the major types of expenses that are shown on the typical income statement.

· What is the purpose of the balance sheet? Identify the major types of assets and the claims of creditors and owners shown on the typical balance sheet.

· What are the three different accounts that comprise the owners’ equity (also known as stockholders' equity) section on a typical corporate balance sheet?

· What is a statement of cash flows? Describe the three standard sections contained in a statement of cash flows.

PART 2: Complete both the balance sheet and income statement exercises in the attached Excel file and submit as a file. Note: the file is auto submitted to Turnitin and will result in high score. Please disregard the score.