A companys stakeholders often differ in their financial statement focus. For example, some stakeholders focus primarily on

Question:

A company’s often differ in their financial statement focus. For example, some focus primarily on the income statement, while others may 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 likely focus for the stakeholder. Choose either the income statement, balance sheet, or statement of cash flows and justify your choice.
Situation 1: Assume that you are considering purchasing a personal computer from Dell.
Situation 2: Assume that you are considering investing in eBay (capital market stakeholder).
Situation 3: Assume that you are employed by Sara Lee (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.
Situation 4: Assume that you are considering taking a job (internal stakeholder) with either Sears or JCPenney.
Situation 5: Assume that you are a banker for US Bank (capital market stakeholder), and you are considering whether to grant a major credit line (loan) to Target. The credit line will allow Target to borrow up to $400 million for a 5-year period at the market rate of interest.

Stakeholders
A person, group or organization that has interest or concern in an organization. Stakeholders can affect or be affected by the organization's actions, objectives and policies. Some examples of key stakeholders are creditors, directors, employees,... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...