Other entries that are required in an equity section

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“owed” to the stockholders. Other entries that are required in an equity section would be shares authorized (both paid in full shares and shares not paid in full), par values of shares, reconciliation of shares at beginning and end of period, treasury shares, shares reserved for issuance under options and contracts, and a description of both nature and purpose of each reserve in owner’s equity. The reason I think this is the most important part of annual report is because it allows you to see exactly what a company is paying out and to whom, how much in liquid assets they have,
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and how well they manage the money that is given to them. I think that the balance sheet gives the most accurate and simple way to find the value of a company. The last section I think is important to making an investment decision is the cash flow statement. The cash flow statement reflects a company’s liquidity. A cash flow statement is meant to: -provide information pertaining to a company’s ability to change cash flows in future circumstances -give additional information for evaluating changes in assets, liabilities, and assets - improve the ability to see what accounting methods work best and which to eliminate - indicate the timing, amount and probability of future cash flows The cash flow statement includes sections on cash flow from operations (total of all
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Christopher Reinemann
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