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Library Research Assignment
There are 4 primary financial statements used in financial statement analysis. They are the balance sheet (or statement of financial position), the income statement (or the statement of operations), the statement of changes in shareholders' equity, and the statement of cash flows. For this activity, you should choose at least 2 of these statements and discuss the following:
What is the purpose of this financial statement?
What are its primary components, and what do they represent?
Who are the primary users of this statement, and how is it generally used?
What GAAP (Generally Accepted Accounting Principles) are employed in its construction?
How does this financial statement relate to the other financial statements?
Financial Statement Analysis and Preparation
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T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .
Computation of Free Cash Flow
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