Problem:
Explain the importance of financial statements in relation to reporting organizational performance, how such financial statements link together, and the information that they provide for managers. Additionally, explain the process of master budgeting and the components contained within them. Why is cash flow forecast important for managers, and how does it tie in with other financial statements?
Additional Information:
This question is from Finance as well as it is an essay on the importance of financial statements in an organization in relation to organizational performance. Financial statements consist of income statements, balance sheets, cash flow statements etc. The importance of each of these is mentioned in the solution.