Final answer:
The balance sheet is not used to determine free cash flows, which are derived from the income statement and cash flow statement.
Step-by-step explanation:
Balance sheet information is useful for assessing a company's risk, evaluating a company's liquidity, and evaluating a company's financial flexibility. However, determining free cash flows is not one of the functions of a balance sheet. Free cash flow is calculated from the company's income statement and cash flow statement by taking operating cash flow and subtracting capital expenditures. While the balance sheet does provide important information about the company's assets, liabilities, and equity at a specific point in time, it does not detail the cash flows from operating, investing, and financing activities.