One bag contains 4 white balls and 2 black balls; another contains 3 white balls and 5 black balls. If one ball is drawn from each bag, find the…

Income statement (Profit & Loss) shows performance over a period – revenues minus expenses equals profit or loss. Shows whether business is profitable.

Balance sheet (Statement of Financial Position) shows position at a point in time – assets = liabilities + equity. Shows what business owns, owes, and is worth to owners.

Cash flow statement shows cash movements – operating, investing, and financing activities. Business can be profitable but cash-poor. All three statements needed for complete financial picture.