Discussion Response 1.2

Financial Statements 

Activity Context 

This discussion helps you develop the skills to master the following course competencies: 

• Apply the theories, models, and practices of finance to the financial management of the firm. 

Activity Instruction

Compare and contrast the balance sheet, income statement, and cash flow statement. (Note that to compare and contrast these three tools, you will need to define each of them). Discuss the following:

• What is the most important segment of a cash flow statement? Why?

 • Can the cash flow statement be manipulated? If so, how? If not, why not? 

• Are most investors sophisticated enough to interpret a cash flow statement? Should they be? 

 Support your post as appropriate with the theories presented in this week’s required reading.

Response Guidelines 

 Your responses should be substantive and could involve one or more of the following: 

• Debate the topic. 

• Ask a probing question. 

• Share an insight you gained from your peer’s post. 

• Make a suggestion. 

• Share a personal experience related to the topic. 

• Expand on your peer’s post. 

Resources 

• Discussion Participation Scoring Guide.