Answer
(a) Income statement.
(b) Balance Sheet
(c) Statement of Cash Flows
(d) Balance sheet .
Work Step by Step
(a)
The best statement one needs to the lookout is retained earning alternately the second option can be preferred income statement
Reason:
This statement represents how profits and losses are managed over a period of time :
So the key element this statement represents is the dividends that are paid to the stockholders as it will have both positive and negative effects for the stock investor in order to make them feel whether to hold the stock or sell the stock.
This showcases the company whether the company is willing to share the profits with the shareholders or not.
Similarly, we can use an income statement as it represents all the income and expenses that occurred for the firm and it helps the firm to determine whether it is possible for the firm to survive for the least amount of time.
As mentioned both of the options are beneficial however it depends on the person’s perspective.
(b)
The best statement the investor can lookout is the Balance Sheet.
Reason:
Xerox needs to evaluate the customer's short-term liquidity and financial stability. The balance sheet provides insight into current assets (like cash and receivables) and current liabilities, helping assess whether the customer can meet payment obligations within 60 days.
(c)
So here the company not only focusing on the short-term plans but also looking for long-term plans. Additionally, they have a concern about whether they going to have any funds for purchasing of the new equipment.
So, similarly in this case also the best statement the investor can lookout is the statement of Cashflow
(d)
Whether any other financial statement work here or not but the balance sheet surely going to help in making a decision.
Reason :
This concurs with the nature of the balance sheet as it is very common and prepared on annual basis.
