solved No, I do not agree with this assessment. Though I

No, I do not agree with this assessment. Though I do not necessarily agree with the statement, I can see how they may have come to that conclusion. First, let’s discuss the purpose of each these two documents. The purpose of using a balance sheet is to show a company a snapshot/overview of it’s assets and liabilities during a given period. Business owners use balance sheets to liquidity and financial leverage of their organization. The purpose of an income statement is exactly as the name sounds, show the business what their income is. Specifically, it outlines the income and expenses over a given period. These documents together play a huge role in assessing a company’s financial health but they are not the only documents needed. One area that was not mentioned by my co-worker was the benefits of analyzing market to book value. This is a tool investors use to evaluate the company’s stock.