Statement or Report Balance sheet Statement of cash flows Description Summarizes a company's assets, abilities, and stockholders' equity at a specific point in time. Aggregates all cash inflows, which the company receives from its ongoing activities and Investment sources, and all cash outflows. Details changes in the capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earings Is issued once a year by a corporation and contains basic financial statements and an analysis of past performance and future prospects Is divided into two important parts: operating and non-operating sections, also known as the profit and loss statement Annual report Accountants focus on creating financial statements, whereas finance professionals use these statements to evaluate a firm and answer questions about its performance Indicate which financial statement you would refer to when answering the questions in the following table: Balance Sheet Statement of Cash Flows Does the firm generate enough internal funds to support anticipated investment, or does additional outside capital need to be raised? Can the firm meet all its short-term obligations using its current assets? The annual report is very important for investors, because the information contained in the annual report: shows the prices at which each investor purchased the company's stocks and bonds helps investors forecast expected earnings and dividends