Josh GoldbergHW Ch.3 Part IST-1a.Annual report: Report issued annually by a corporation to its stockholders. It contains basic financial statements as well as management’s analysis of the firm’s past operationsand future prospects. Balance Sheet: A statement of a firm’s financial position at a specific point in time.Income Statement: A report summarizing a firm’s revenue’s expenses, and profits duringa reporting period, generally a quarter of a year. Statement of Cash Flow: A report that shows how things that affect the balance sheet and income statement affect the firm’s cash flows.Statement of Stockholders’ Equity: A statement that shows by how much a firm’s equitychanged during the year and why this change occurred. b.Stockholders’ Equity: It is the amount that stockholders paid to the company when they bought shares the company sold to raise capital, in addition all of the earnings retained over the years.