Question2 Notigi Mines Ltd. (Notigi) is a mining venture that recently began ope

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Question2 Notigi Mines Ltd. (Notigi) is a mining venture that recently began operations in northem Manitoba. The mine has been under development for the last two years and will produce its first shipments of refined metal before the end of the current fiscal year. Two senior executives who have extensive mining experience manage the mine. The mine is owned by a syndicate of 20 investors, mainly professionals such as accountants, doctors, lawyers, and dentists who live in various parts of western Canada Notigi extracts ore from the ground and ships it to another company for processing into refined metal. The processing company then returns the refined metal to Notifgi for sale and shipment to buyers. Notugi has already entered into long-term contracts with several buyers to purchase virtually all the mine's production at prices specified in the contract. Any production not covered by the long-term contracts can easily be sold at prevailing prices in the open market. Required: 1) Name two different users and their objective for the financial statements 2) For each objective chosen, include an explanation of why you chose that objective User Objective Explanation

Explanation / Answer

Users Objective Explanation Investors Investment decision Prospective investors need information regarding the operating performance of company and future prospects of company so that a wise investment decision can be taken Customers Buying decision Customers having long term contracts with company needs the financial statements of company so that they would be familiar with company ability of supplying the contracted quantity on long term basis.

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