FIN 370 Week 5 DQ 1 -
DQ 1. Financial Statements are critically important in understanding the overall "financial health" of a company. All of the financial statements must be reviewed as a complete package rather than one being analyzed as a standalone statement that could give the reader false results. They each tell us something different, but all combined they tell the story of the state of affairs of a company. Describe two key financial statements (income statement, balance sheet, statement of retained earning's, and statement of cash flows). What type of information do the reports provide? How can information from these reports be analyzed and used by managers in the decision-making process?