You borrowed P10,000 and committed to pay back the entire principal plus interest of 3.25% per year after 6 years. Draw the cash flow diagram and their values for the borrower and the lender.

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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.