E-2 - Robert McCain ACC 305 / 7190 Financial & Managerial...

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Robert McCain ACC 305 / 7190 02/07/2011 A company’s stakeholders often differ in their financial statement focus. For example, some stakeholders focus primarily on the income statement, while others may focus primarily on the statement of cash flows or the balance sheet. For each of the following situations, indicate which financial statement would be the likely focus for the stakeholder. Choose either the income statement, balance sheet, or statement of cash flows and justify your choice. Situation 1: Assume that you are considering purchasing a personal computer from Dell. None, since as a customer I am concerned about the quality of product and service of company and not at its financial and cash positions. Of course one can argue that Income statement could be considered as this will reflect upon company’s potential to earn in future and its survival which is necessary for company to serve its customers through service and parts. Situation 2: Assume that you are considering investing in eBay (capital market
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This note was uploaded on 02/23/2011 for the course ACC 305 taught by Professor Allison during the Spring '11 term at Western Intl..

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