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The primary reason the annual report is important in finance

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The primary reason the annual report is important in finance TRUE/FALSE 1. The annual report contains four basic financial statements: the income statement, balance sheet, statement of cash flows, and statement of stockholders’ equity. 2. The primary reason the annual report is important in finance is that it is used by investors when they form expectations about the firm’s future earnings and dividends, and the riskiness of those cash flows. 3. Consider the balance sheet of Wilkes Industries as shown below. Because Wilkes has $800,000 of retained earnings, the company would be able to pay cash to buy an asset with a cost of $200,000. Cash $ 50,000 Accounts payable $ 100,000 Inventory 200,000 Accruals 100,000 Accounts receivable 250,000 Total CL $ 200,000 Total CA $ 500,000 Debt 200,000 Net fixed assets $ 900,000 Common stock 200,000 _________ Retained earnings 800,000 Total assets $1,400,000 Total L & E $1,400,000 4. On the balance sheet, total assets must always equal total liabilities and equity. 5. Assets other than cash are expected to produce cash over time, but the amount of cash they eventually produce could be higher or lower than the values at which these assets are carried on the books. Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help

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