A company's stakeholders often differ in their financial statement focus. For example, some stakeholders focus primarily on the income statement, while others 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 most likely focus for the stakeholder. Choose either the income statement, balance sheet, or statement of cash flows. Situation 1: Assume that you are considering purchasing a personal computer from Dell. Situation 2: Assume that you are considering investing in LinkedIn (capital market stakeholder). Situation 3: Assume that you are employed by Campbell Soup Co. (product market stakeholder) and are considering whether to extend credit for a 60-day period to a new grocery store chain that has recently opened throughout the Midwest.
A company's stakeholders often differ in their financial statement focus. For example, some stakeholders focus primarily on the income statement, while others focus primarily on the statement of
Situation 1: Assume that you are considering purchasing a personal computer from Dell.
Situation 2: Assume that you are considering investing in LinkedIn (capital market stakeholder).
Situation 3: Assume that you are employed by Campbell Soup Co. (product market stakeholder) and are considering whether to extend credit for a 60-day period to a new grocery store chain that has recently opened throughout the Midwest.
Balance sheet represent the financial position of the company how much of stakeholders funds are invested in the companies assets.
Statement of Cash flows represent the inflow and outflow of funds in Operating, Investing and financing activities.
Income statement represent the financial performance of the company.
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