Introduction
“Show me the money!” said Cuba Gooding Jr’s in movie “Jerry Maguire”. That’s what financial statements do. It shows where a company’s money came from, where it went, and where it is now. There are four main financial statements - balance sheets, income statements, cash flow statements and statements of shareholders’ equity. * Balance sheets show what a company owns and what it owes at a fixed point in time. * Income statements show how much money a company made and spent over a period of time. * Cash flow statements show the exchange of money between a company and the outside world also over a period of time. * The fourth financial statement, called a “statement of shareholders’ equity,” shows changes in the interests of the company’s shareholders over time.

Task 1 Financial statements
There are two main purposes of financial statement: first of all, to report on the financial position of an entity; secondly to show how the entity has performed over a particular period of time. Throughout the existence of a business many requests will be made for its financial statements. Financial statements are intended to provide information on the recourses available to management, how these recourses were financed, and what the company has accomplished with them.
Financial statements are formal presentations of the flow of money into, through and out of a business. Financial statements are comprised of four main areas - balance sheets, income statements, cash flow statements and retained earnings.

1.1 Balance sheet
“The balance sheet shows what recourses (assets) the firm controls and how it has financial these assets. Specifically, it indicates the current and fixed assets available to the firm at a point of the time.” (Reilly,F.K, Brown, K.C, 2006, p.302) The balance sheet is a financial snapshot of the business on a particular