The cash flow statement shows how well the finances are being managed. The statement of cash flows reports the cash effects of a business’s operation, investing and financing activities. (Kimmel, Weygandt, & Kieso, 2011,). It is a breakdown of what is coming in and what is going out of the business and shows if the business is financially sound.
The Equity statement shows the equity of shareholders and owners at the end of a financial period. It will show how they got to the balance and how it changed from one period to the next.
The financial statement is very useful to employees by providing them with a sense of job security if it is showing that the business if profitable. The majority of businesses will post their financial statement for existing and potential employees