Who cares about the income statement

Assignment Help Financial Accounting

Reference no: EM13180218

Your friend comments, "I just ignore the income statement when I'm making an investment decision. All I care about is the cash, so that the company can pay me dividends. The balance sheet tells me about the cash the company's got; the cash flow statement tells me about its changes in cash. Who cares about the income statement? It's just a bunch of inaccurate stuff loaded with estimates." Do you agree with your friend's remarks about the income statement and its lack of importance? Explain why or why not.

Reference no: EM13180218

Questions Cloud

What is the length of the escalators : John steps on an escalator to leave a subway. Then, 5 seconds later, Jane steps on a parallel escalator to enter the subway. They pass 14 seconds after that. If both escalators are travelling at a speed of 5 feet per second, what is the length of ..

State unloading port provision is made for vaporization : Large quantities of liquefied natural gas (LNG) are shipped by ocean tanker. At the unloading port provision is made for vaporization of the LNG so that it may be delivered to pipelines as gas.

How far is the balloon from the western station : Two weather tracking stations are on the equator 146 miles apart. A weather balloon is located on a bearing of N 35°E from the western station and on a bearing of N 23°E from the eastern station. How far is the balloon from the western station?

Which country will suffer the greatest decline in employment : Suppose that two economies initially have the same level of real income and both suffer unanticipated declines in their sales of exports of $50 billion. Country "A" has higher tax rates and a higher level of government spending than economy "B". O..

Who cares about the income statement : The balance sheet tells me about the cash the company's got; the cash flow statement tells me about its changes in cash. Who cares about the income statement?

Find the probability of a sample mean : for a sample of n=100, find the probability of a sample mean being greater than 24.3 if u=24 and o=1.25.

Find the depth of the pool : the length of a pool is 22 ft. the width is 40 ft. if the volume of the pool is 2,000 ft3, which equation below could be used to find the depth of the pool?

State a chemist performed a titration experiment : A chemist performed a titration experiment in order to determine the concentration of a given aqueous solution of HCl (an acid). She pipeted 20.00 mL of the HCl solution into an Erlenmeyer flask.

What is the distance between crests or compressions : A sound wave has a frequency of 3500 Hz. What is the distance between crests or compressions of the wave? (Take the speed of sound to be 344 m/s.)

User Account

All Pages