Solution 3-2 Following are the basic users of financial statements: 1) Management of the company: They use financial statement to analyze company’s performance and find the areas they need to improve in. 2) Creditors or lenders: Creditors analyze short term and long term solvency of the company before granting any credit to them 3) Shareholders and Investors: Shareholders and investors use financial statement to analyze strength and weakness of the company and make judgment about the growth potentials. 4) Government: Government uses financial statements to analyze the pre tax income of the company and determine their tax liability. 5) Investment analyst: They uses financials statements of a company to analyze and recommend what stocks their clients should invest in..