Question 1:Stockholders’ equity is an important heading in a corporate balance sheet. Let’s begin the discussion of stockholders’ equity by asking: How is the stockholders’ equity section of a corporate balance sheet different from that in a single-owner business? Question 2: What are the main components of stockholders’ equity? Question 3: Let’s talk about dividends! Why do companies give dividends? Are companies required to declare dividends? What factors have to be considered by a company before giving a dividend? Second part Question 1: Let’s begin our discussion by asking this question: When we already have the income statement and balance sheet to tell us about the financial performance and financial health of a company, why was there a need to require companies to prepare a statement of cash flows? Question 2: Can a statement of cash flows be manipulated? If so, how? Question 3: If a company has negative cash flow from operations, what types of things could they do to improve the cash flow?
