Managers within the firm, as well as the firm’s owners and lenders, keep track of the firm’s performance by reviewing its financial statements – income statement, balance sheet, and statement of cash flows.

Instructions: There are 2 Parts to this assignment.

PART 1: In a 600-700 words paper (not including title page or references), respond to the following:

• What is the purpose of the income statement? Identify the major types of expenses that are shown on the typical income statement.
• What is the purpose of the balance sheet? Identify the major types of assets and the claims of creditors and owners shown on the typical balance sheet.
• What are the three different accounts that comprise the owners’ equity (also known as stockholders’ equity) section on a typical corporate balance sheet?
• What is a statement of cash flows? Describe the three standard sections contained in a statement of cash flows.

APA7 and Turnitin are required. Include a minimum of 2 references. In the Assignment dropbox, please attach your paper as a file, do not copy & paste.

PART 2: Complete both the balance sheet and income statement exercises in the attached Excel file and submit as a file. Note: the file is auto submitted to Turnitin and will result in high score. Please disregard the score.