The White Swan Talc Company paid $120,000 for mining equipment for a small talc mine. The mining engineer's report indicates the mine contains 40,000 cubic meters of commercial- quality talc. The company plans to mine all the talc in the next 5 years as follows: Year Talc Production (m³) 15,000 11,000 2 4,000 6,000 4

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Financial Statements

Financial statements (or financial reports) are the formal records of the financial activities that are undertaken by a firm. They are convenient instruments used for analyzing a company’s financial position and performance. Financial ratios are created with the help of the numerical values that are derived from the financial statements. They give meaningful information about the financial performance of the company.