Discussion # 1: Financial Statements Financial Sta

Discussion # 1: Financial StatementsFinancial StatementsA public company refers to a company that trades on stock markets or offered initial public offer to the public, and is therefore, accountable to the public on a certain level. Therefore, the most important financial statements to a public company is the balance sheet. In a balance sheet, the company can show the investors the kind of assets, liabilities, and the financial muscle that can sustain the company in a financial year or the next three financial years and its plans for the future. The main reason a balance sheet is the most important financial statement for a public company lies in the reality of sustainability in terms of assets and less on liability. A public company with many assets compared to liabilities comes across as the best company for investors to consider buying shares and conduct business (Gerald 2013).The small business that I chose is an enterprise in video editing and film production. The name of the small business is Rejewa Productions. The most crucial financial statements that are essential to the running of the day-to-day operations are the profit and loss statements and cash flow. The profit and loss financial statement helps