Your question is M&A Decision Using Financial Statements. Take a moment with it on the right.
Talk me through your thinking if you like. When you're confident, submit your answer and I'll grade it like a real screen (7/10 or better passes).
How would you use the three financial statements to make an M&A decision?
Explain how you would use the income statement, balance sheet, and cash flow statement to assess the target's earnings quality, cash generation, funding needs, purchase-price financing, pro forma leverage, and potential accretion or dilution. Address how you would distinguish accounting earnings from cash flow and identify balance-sheet risks before recommending whether to proceed. No company-specific financial data is provided, so focus on the analytical framework and the decision process.