Balance sheets help business owners, investment bankers, and accountants understand the assets of a business. In particular, balance sheets outline what the business owns, or its assets. It also notes what the business owes, or its debt and liabilities. A company’s income statement is just as important as its balance sheet and tells you how much profit a company generated during a particular year. The statement of cash flows is a useful tool for stakeholders and can provide insight into how effectively the organization manages its operations. Businesses use a statement of cash flows to understand a company’s performance, more specifically, to assess a company’s ability to generate cash from operations, financing, and investing.