Part I

Review the companies' balance sheets, statements of income/operations, and statements of cash flows. Identify and describe five similarities and five differences between the two companies' financial statements.

Part II

After analyzing the statements, respond to the following:

1. You have reviewed information on three financial statements for two respective organizations. In what way is each statement useful? Which statement seems to you most useful?

2. If, due to time constraints, your organization could only prepare one financial statement, which one-balance sheet, statement of income, or statement of cash flow-would you recommend? Why?