Various financial statements are used in the analysis of business performance. These include the balance sheet, income statement and the cash flow statements (Woolridge & Gray, 2006). These statements are used to reflect various aspects of business performance, including calculation of key ratios that are used to evaluate performance of a business entity. An income statement makes available an entities revenues and expenses for a given duration and hence its serves as a basic measure of profitability (Carl, 2008). On the other hand, a balance sheet shows an entities assets portfolio and hence reflects the business liquidity position. The cash flow statement shows the businesses’ cash spending and hence reflects the cash available for use by the business at any given time. The Lemonade case falls under fast-food restaurant and as such to evaluate its actual financial performance, it is wise to insider its performance to that of other players within the industry. This report compares the Lemonade stand business against Green tree Mall fast food restaurant, a fast growing fast food restaurant that has been able to record god financial results over the last three years. The choice of Green tree Mall restaurant is largely motivated by its astounding financial performance over the last five years, making it a leading player in the industry. In its last quarter, the fast-food restaurant recorded 42% profit, with a return on equity and return on assets of 56% and 52% respectively. Its outstanding performance is reflected by its large profitability ratio (62%). The current ratio of 5.12 while debt to equity ratio of 1.14. The results were far beyond the industry’s debt to equity ratio of 0.85 and a current ratio of 4.80. This positions the fast-food restaurant as the industry’s benchmark of performance excellence. However, this is not the focus of this paper. Green tree Mall fast food restaurant will only be used as a benchmark measure of the performance of Lemonade stand business. The performance of the Lemonade stand presented in this report, is a continuation of its first season’s performance. An additional comparison is made between its first season’s performance and second season’s performance. The performance is shown by the income statement, the balance sheet, and the financaila ratios indicating the businesses’ performance. See below: Table 1: Income statement year 1 and year 2                 Year 1  Year 2 Revenues        184.10  314.56 Less: Expenses  62.22   86.58  Net-Income      121.88  227.98  Year 1 and year 2 results reveal a rise in spending as well as revenue from year 1 to year 2. This shows that the businesses generated more income and expenses during the second season. Balance Sheet                              Assets:                             Year 1  Year 2 Cash                                184.10  314.56 Inventories                         3.03    5.6    Equipment                           9.00    12.12  Total Assets                        196.13  332.28 Liabilities                                        Accounts Payable                    34.25   44.25  Total Liabilities                   34.25   44.25  Equity                                             Owner’s Capital                     40.00   161.88 Retained Earnings                   121.88  126.15 Total Equity                        161.88  288.03 Total Lia