After investigating the different forms of business

After investigating the different forms of business organization. Natalie Koebel decides to operate her business as a corporation, Cookie Creations Inc . and she begins the process of getting her business running.

While at a trade show. Natalie is introduced to Gerry Richards. operations manager of 'Biscuits.' a national food retailer After much discussion. Gerry asks Natalie to consider being Biscuits' major supplier of oatmeal chocolate chip cookies He provides Natalie with the most recent copy of the financial statements of Biscuits He expects that Natalie will need to supply Biscuits Water town warehouse with approximately 1,500 dozen cookies a week Natalie is to send Biscuits a monthly invoice. and she will be paid approximately 30 days from the date the invoice is received in Biscuits' Chicago office Natalie is thrilled with the offer However, she has recently read in the newspaper that Biscuits has a reputation for selling cookies and donuts with high amounts of sugar and fat, and as a result, consumer demand for the company's products has decreased


Instructions
Natalie has several questions Answer the following questions for Natalie

(a) What type of information does each financial statement provide?

(b) What financial statements would Natalie need in order to evaluate whether Biscuits will have enough cash to meet its current liabilities? Explain what to look for.

(c) What financial statements would Natalie need in order to evaluate whether Biscuits will be able to survive over a long period of time Explain what to look for.

(d) What financial statement would Natalie need in order to evaluate Biscuits' profitability? Explain what to look for.


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