Your client, Mary Barnhart, wants to open her ownbusiness. She is having difficulty understanding...

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Accounting

Your client, Mary Barnhart, wants to open her ownbusiness. She is having difficulty understanding the purposes offinancial statements and how they fit together across time.REQUIRED: Write a one-page letter to Ms. Barnhart explaining thepurposes of the income statement, statement of owners' equity, andthe balance sheet and how they are linked. Use the attached examplefor guidance.
Henry Whiteapples
123 Maple Street
Columbus, OH, 45888
December 21, 2004
Dear Mr. Whitebridge,
I understand you are concerned about the Statement of Cash Flowsand what it means.
The Statement of Cash Flows is one of four important financialstatements for every business. It provides details about thesources and uses of cash during a fiscal period (month, quarter, oryear). There are three sections to the Statement of Cash Flows:Operating Activities, Investing Activities, and FinancingActivities. The Operating Activities section provides details aboutcash receipts and payments for day-to-day operations. The InvestingActivities section provides details about cash receipts andpayments for long-term assets and the Financing Activities sectionprovides details about cash receipts and payments for debt(long-term borrowing) and equity (stock) transactions. The total onthis statement is equal to the cash account balance on the BalanceSheet for the same period.
I hope this explanation helps you better understand theStatement of Cash Flows. Please feel free to contact me if you haveadditional questions.
Sincerely,
Kelsey Sioen

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Barnhart 123 Maple Street Columbus OH 45888 December 21 2004 Dear Ms Banthart I understand you are concerned about the financial statement income statement Balance sheet Statement of shareholders equity The Income Statement is one of four important financial statements for every business It provides details about the details about the sources of revenue and heads where expenditure are See Answer

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In: AccountingYour client, Mary Barnhart, wants to open her ownbusiness. She is having difficulty understanding the...Your client, Mary Barnhart, wants to open her ownbusiness. She is having difficulty understanding the purposes offinancial statements and how they fit together across time.REQUIRED: Write a one-page letter to Ms. Barnhart explaining thepurposes of the income statement, statement of owners' equity, andthe balance sheet and how they are linked. Use the attached examplefor guidance.Henry Whiteapples123 Maple StreetColumbus, OH, 45888December 21, 2004Dear Mr. Whitebridge,I understand you are concerned about the Statement of Cash Flowsand what it means.The Statement of Cash Flows is one of four important financialstatements for every business. It provides details about thesources and uses of cash during a fiscal period (month, quarter, oryear). There are three sections to the Statement of Cash Flows:Operating Activities, Investing Activities, and FinancingActivities. The Operating Activities section provides details aboutcash receipts and payments for day-to-day operations. The InvestingActivities section provides details about cash receipts andpayments for long-term assets and the Financing Activities sectionprovides details about cash receipts and payments for debt(long-term borrowing) and equity (stock) transactions. The total onthis statement is equal to the cash account balance on the BalanceSheet for the same period.I hope this explanation helps you better understand theStatement of Cash Flows. Please feel free to contact me if you haveadditional questions.Sincerely,Kelsey Sioen