1. “Notes” to financial statements:
are as important as the financial statements to a financial analyst.
mostly deal with issues of rounding of numbers.
are not required if the auditor gives a clean opinion.
are generally not necessary.
2. If total stockholders’ equity is $55K and stock is $50K, what is amount of retained earnings on the Statement of Stockholder’s Equity?
a. $105K
b. $15K
c. $5K