Think about the different types of financial statements you learned about the income statement, statement of retained earnings, balance sheets, and statements of cash flow. If you were an investor, would you place more emphasis on any one particular financial statement? Why, or why not?

The three most important financial statements are the income statement, balance sheet and cash flow statement. They are all linked together, and any investor needs to analysis the three of them together.

The income statement and the cash flow statement show information about a certain period of time, while the balance sheet is like a photo of one single day. Each one shows something different about the company:

the income statement shows how profitable the company is. But no matter how profitable a company might be, if it doesn't have enough cash to function then it is bankrupt, that is the importance of the cash flow statement. The balance sheet shows the financial position of the company, specially how the company is being financed.

Where one ends, other one begins:

The income statement starts with total revenue and ends in net income. Net income is the starting point of the cash flow statement and at the same time shows the change in retained earnings (balance sheet). The cash flow statement starts with net income and ends in the cash balance which is the starting point of the balance sheet. The balance sheet ends in retained earnings and the changes in retained earnings are given by net income and dividends paid.

They are all linked together and they are all needed in order to perform a proper analysis.

steering wheels are always situated on the left side of the car.

always drive on the right side of the road.

white lines separate lanes of traffic traveling the same direction.

hashed or broken lines means you may change lanes when it is safe.

solid white lines mean stay in your lane.

yellow lines separate traffic moving in opposing directions.

hashed or broken yellow lines mean you can carefully pass, paying attention to oncoming traffic.

never cross a solid yellow line (or double yellow line).

when turning left at an intersection, pass in front of any cars that are turning left from the opposing direction (do not try to pass behind them).

use the left lane to pass other cars traveling your direction.

do not pass in the right lane unless absolutely necessary.

if you are driving in the far left hand lane and someone would like to pass you, move over to the right lane when it is safe to do so and allow them to pass.

you must always yield to pedestrians.

come to a complete stop whenever you see pedestrians trying to cross the street.

never pass a school bus if it has flashing red lights. wait until the lights have stopped.

be aware of bicyclists. often they share the road with cars and are supposed to also follow general traffic laws.

be particularly careful about driving in cities with bike lanes -- always check before turning that a bike is not coming.

it is mandatory to pull over or stop at an intersection to allow an emergency vehicle to pass you if you see one traveling with lights flashing and/or a siren running.

do not overuse your car horn. horns are used almost exclusively for emergency situations or for when you feel unsafe.

explanation:

enjoy the dunce cap fool