Question: Marcus needed to create a financial statement for the previous quarter. He started with a balance sheet, which showed the balance of liabilities and assets

Marcus needed to create a financial statement for the previous quarter. He started with a balance sheet, which showed the balance of liabilities and assets within the company. Next, he created an income statement. This showed the profits and losses of the company. Finally, he created a cash flow statement, which showed the money coming in and money going out. While the company had been seeing a negative cash flow, Marcus knew it was because of investments within the company, and that the cash flow would return to normal. At the end of the year, all of the data collected from the reports were combined into the annual report that went out to the companys key players and shareholders.

is Marcus on the right path as it relates to the statements and his view regarding the negative cash flow statements?

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