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How would the financial statements be useful to managers and employees? How would the financial statements be useful to investors and creditors?

Managers use financial statements to plan ahead and set goals for upcoming periods. When managers use the financial statements that were published, the management can compare them with their internally used financial statements. Employees use financial statements to help in making collective bargaining agreements with management, in the  case of labor unions or for individuals in discussing their compensation, promotion, and rankings. Investors use these statements to assess the viability of investing in a business. Financial analyses are often used by investors and are prepared by professionals which provides them with the basis for making decisions. Creditors use financial statements to decide whether to grant a company with fresh working company or to extend debt to finance expansion and other significant expenditures.

A manger would most defiantly want all the information that is include in all four financial statements in order to run their little part the firm correctly. For example, a manager would want to gear a store in the right direction to make a profit an not run it into the ground. With the financial statements one could see where the funds are going and were corrections should be made. An investor would be interested in the income statements in order to see the overall health of a company prior to investing a large sum of money into it.   They will want to look over the retained earnings statement to see what other shareholders have been seeing back.  Likewise, the same would be said about a creditor loaning a company money.

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