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Presentation to Stakeholders

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Submitted By LynnGaspar
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Presenting to Stakeholders

Lynn Gaspar

ACC/230

Renita Kinney

October 26, 2014

R.E.C. Inc.’s staff of accountants finished preparing the financial statements for 2007 and will meet next week with the company’s CEO as well as the Director of Investor Relations and representatives from the marketing and art departments to design the current year’s annual report. Required Write a paragraph in which you present the main idea(s) you think the company should present to shareholders in the annual report.
Financial statement analysis from the standpoint of management relates to all of the questions raised by creditors and investors because these user groups must be satisfied in order for the firm to obtain capital as needed. Management must also consider its employees, the general public, regulators, and the financial press. Management looks to financial statement data to determine: How well has the firm performed and why? What operating areas have contributed to success and which have not? What are the strengths and weaknesses of the company's financial position? What changes should be implemented in order to improve future performance? Financial statements provide insight into the company's current status and lead to the development of policies and strategies for the future. It should be pointed out, however, that management also has responsibility for preparing the financial statements. The analyst should be alert to the potential for management to influence the outcome of financial statement reporting in order to appeal to creditors, investor’s, and other users. It is important that any analysis of financial statements should include a careful reading of the notes to the financial statements, and it may be helpful to supplement the analysis with other material in the annual report and with

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