Homework Questions to Consider (35 points total) Review thefollowing information found in Chapter 17 of the textbook. •Figure17.5, Very Vegetarian—Balance Sheet, dated December 31, 2012•Figure 17.7, Very Vegetarian—Income Statement, dated December 31,2012 •Figure 17.8, Very Vegetarian—Statement of Cash Flows, datedDecember 31, 2012 You are contemplating investing in VeryVegetarian or possibly purchasing the company outright. Based onthis information, as well as the financial statements provided inthe textbook, answer the following questions in a two- tothree-page paper. Your paper should use APA style. Why is itadvisable to evaluate the company’s financial statements? What keyinformation would you seek to understand about the financialstatements? Why? (8 points) It appears that Very Vegetarianfinancial statements follow a very strict form. Why must accountingreports be prepared according to specific procedures (GAAP)? Is itpermissible for businesses to be allowed some flexibility orcreativity in preparing financial statements? Why? Why not? (7points) What value do financial ratios offer investors in reviewingthe financial performance of a firm? (8 points) Why is it importantto understand that financial ratios can differ from industry toindustry? (7 points) Include APA style reference information asin-text citations and at the end of your paper. (5 points) Uploadyour completed paper to the Dropbox for Week 7. To successfullycomplete your Questions to Consider assignments, you will need tobe familiar with the APA style guide for writing yourcitations.