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Potential stockholders and lenders are interested in a company's financial statements. Several financial statement items appear below. Answer the questions that follow.
A Which two items would stockholders be most interested in that can either be computed from the above data or are included in the items listed above? Explain why the two you selected are important to stockholders.
B In which one item would lenders be most interested? Explain why this item is important.
Government Expenditure
The total amount of spending by a government on goods, services, and public works.
Output
The quantity of goods or services produced in a given period by a firm, industry, or country.
Multiplier Size
A measure of the impact of fiscal and monetary policies on the national income, showing how initial spending leads to increased total spending.
Fiscal Policy
Government policies regarding taxation and spending that are used to influence economic conditions, including stimulating or restraining economic growth.
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