Final answer:
The question involves understanding and defining the four types of financial statements that Folgeys Coffee Company would report: the income statement, balance sheet, statement of cash flows, and statement of retained earnings.
Step-by-step explanation:
The question presented is related to financial reporting, more specifically the types of statements that a business like Folgeys Coffee Company will report at the end of a fiscal year. These reports are essential for a business as they provide information about the company's financial performance and position.
Income Statement
An income statement is a financial report that shows a company's revenues and expenses over a specific period, usually a fiscal year, and the resulting net income or loss for that period.
Balance Sheet
A balance sheet is a financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time. It provides a snapshot of the company's financial condition at the end of a fiscal year.
Statement of Cash Flows
The statement of cash flows details the company's cash inflows and outflows over a period, categorizing them into operations, investing, and financing activities.
Statement of Retained Earnings
The statement of retained earnings shows the changes in a company's retained earnings over a reporting period. It starts with the beginning balance, adds net income or loss, and subtracts any dividends paid to shareholders, resulting in the ending retained earnings balance.