Reference no: EM133254145

Imagine that you and two of your college friends, Jamie and Chen, just won a chance to go on Shark Tank, the show that invites entrepreneurs to pitch new business ideas to multimillionaires (the "Sharks") in hopes of gaining financial backing from them.  

From watching the show, you know that the "Sharks" will be asking about your financial statements, so you want to be prepared. Because you are the only one who has any business background and knowledge, you will need to educate your business partners about financial statements. You feel they should know the function of financial statements and how they tell the story about a business.

In preparation for your big meeting with the "Sharks," you and your business partners start talking about financial statements, and you have pulled together some notes. In your post, write out what you will be covering with Jamie and Chen:

• What does each financial statement (income statement, balance sheet, and cash flow statement) describe about a company?
• What will the "Sharks" be looking for when they look at your financial statements?
• Which financial statement is the most important? Why?
• What else should your partners know about financial statements so they will know how to answer the "Sharks'" questions in a compelling way?