Financial statements provide an accounting of the financial health and performance of a company, as well as reveal the company’s sources of funding and how it is using its resources. They mix operational data with transacted financial activity to give decision makers a more holistic view of the performance and direction of the organization. Financial statements are usually broken into four main parts: Balance Sheet, Income Statement, Statement of Cash Flows, and Statement of Retained Earnings. Each statement provides specific information about the company’s assets, liabilities, revenues, expenses, cash flow, and shareholder equity. When gathered together they create a comprehensive picture of a company’s current financial status and future prospects. Armed with this knowledge, decision makers can make informed decisions that will help strengthen the company in the short term and ultimately increase long-term profitability.