Balance sheets are built more broadly, revealing what the company owns and owes, as well as any long-term investments. Unlike an income statement, the full value of long-term investments or debts ...

Data found in the balance sheet, the income statement, and the cash flow statement are used to calculate important financial ratios that provide insight into the company’s financial performance.

with different interest rates, it's possible to calculate a company's overall interest rate from information found on its income statement and balance sheet. Image source: Getty Images.

One of the benefits of understanding how the income statement and balance sheet work together is that you can figure out missing pieces of information based on numbers elsewhere in the financial ...