Question

To find financial statements, I go to Yahoo! Finance and type in the name of a company of your choice. Discuss the financial statements of a company of your choice, what they mean in to the company and its shareholders, and how the financial statements relate to each other

Answer 1

At first we should know what are financial statements. It refers to such statements which contain financial information about an enterprise.These statements are a collection of data presented on the basis of logical and consistent accounting principles.

I am discussing financial statements of Indian company which is leading in IT sector, Infosys Limited for the year ended 31 March 2017.

It financial statements consist of consolidated profit and loss account showing profit for the period 14353 Cr and earnings per share these earnings belong to shareholders also.

Consolidated Balance sheet showing asset owned by company and liabilities both current and non current. Liabilities. Company should huge investments of 6382 cr which good sign to both company and shareholders.

Statements of changes in equity which is useful for shareholders to keep an eye on what's going in company.

Statement of cash flows showing proper movement of cash.

These financial statements helps shareholders to assess the short term and long term financial soundness and earnings capacity of the business.

Shareholders are person who purchased shares of company and this is how company got financed so these are the aspects through which financial statements relate to each other.