jamesa.ACC502.M1-b - Natalie has several questions Answer...

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Natalie has several questions. Answer the following questions for Natalie. What type of information does each financial statement provide? The basic breakdowns of each financial statement are as follows: Balance sheet - presents a picture at a point in time of what your business owns (its assets) and what it owes (its liabilities). Income statement - shows how successfully your business performed during a period of time, in a report of revenues and expenses. Retained earnings statement- Indicates how much of previous income was distributed to you and other owners of your business in the form of dividends, and how much was retained in the business to allow for future growth. Statement of cash flows - shows where your business obtained cash during a period of time and how that cash was used. (b) What financial statements would Natalie need in order to evaluate whether Biscuits will have enough cash to meet its current liabilities? Explain what to look for.
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