REVIEW (Review the following resources): – Balance Sheet & Income Statement Relationship: https://www.khanacademy.org/economics-finance-domain/core-finance/accounting-and-financial-stateme/financial-statements-tutorial/v/balance-sheet-and-income-statement-relationship – Basic Cash Flow Statement: https://www.khanacademy.org/economics-finance-domain/core-finance/accounting-and-financial-stateme/financial-statements-tutorial/v/basic-cash-flow-statement RESPOND (300 word count range): Financial accounting reports provide users with detailed information related to a company’s performance. The contents of each can be analyzed independently through industry comparisons and trend assessment. In addition, interrelationships between statements exist. – Research and identify at least one corporation, and describe the way in which the company’s balance sheet and income statement and their statement of cash flows is interrelated – provide examples specific to the company’s reports. – What are the expectations of accounting users, including investors, when it comes to quality reporting, and what are the consequences of poor quality reporting? – Did you observe any quality issues within the statements you reviewed? SEPARATE DISCUSS (100 word count): For the purpose of this discussion I’m using the Income Statement, Balance Sheet and Statement of Cash Flows for The Boston Beer Company ending December 28, 2019. I googled “companies with easy to read annual reports” and this one came up as one of the recommendations. I thought it would be pretty straight forward, however in exploring the first example given by the Corporate Finance Institute I found the following: 1. The net income from the bottom of the income statement links to the balance sheet and cash flow statement. Bostons Beer net income for period ending 12/28/19 was $110,041 Balance Sheet – I could not tie this amount out with the balance sheet. If I calculate the change in retained earnings between 12/29/18 and 12/29/19 I come up with $109,712, a difference of $329 Cash Flow – The Statement of Cash Flows does reflect the net income of $110,041. Accounting users including investors expect relevant and accurate reporting. According to Lev (2011) companies that don’t share relevant information face a substantial share price discount, a higher cost of capital, and a more volatile stock price. The only quality issues I observed was that I didn’t see a supporting schedule for the other income and other expense which were both reported as net. I thought it would be helpful to see more detail.