List five possible users of these statements and state what each would be interested in learning from its review
Possible users and their reasons for interest could be:
Existing creditors who would be concerned about being repaid on time.
Possible creditors who are considering extending credit or making loans to the corporation and being repaid in a timely fashion.
Current stockholders who want to follow and manage their investment.
Individuals or corporations considering an investment in the company.
College students who would use the statements to learn about financial statement analysis.
Managers of the company who would use the statements to evaluate their areas of operations and make decisions to improve them.
Government bodies such as the SEC, which would review the financial statements to ensure conformity to laws that protect the general public.
Labor unions involved with the company, which would review the statements to evaluate present profitability as part of preparing for contract negotiations.NAT: AACSB correlation: communication
You might also like to view...
The purchases account is used to record the cost of goods purchased for resale
Indicate whether the statement is true or false
Marketing logistics involves which of the following flows of products and information?
A) outbound and inbound only B) outbound, inbound, and reverse C) inbound and reverse only D) outbound and reverse only E) outbound only
Registration under ISO 9000 is
a. required for all companies doing business internationally. b. required for all European companies doing business in Europe. c. not required for U.S. companies unless they use European suppliers. d. required for all companies producing regulated products to be sold in the European Union.
The Cardinal Company had a finished goods inventory of 55,000 units on January 1. Its projected sales for the next four months were: January - 200,000 units; February - 180,000 units; March - 210,000 units; and April - 230,000 units. The Cardinal Company wishes to maintain a desired ending finished goods inventory of 20% of the following months sales. What would be the budgeted production for
March? A) 256,000 B) 206,000 C) 214,000 D) 298,000