Though the income statement presents a considerable amount of useful information, it has limitations. For example, unlike a statement of cash flows, an income statement does not distinguish between cash and noncash activities. This can distort analysis of a company’s viability: Insufficient cash flow is a common reason that apparently profitable companies go out of business. In addition, income statements reflect only business activities that can be reliably quantified. For example, income statements don’t reflect missed business opportunities or positive or negative societal impacts.