Final answer:
A financial spreadsheet, particularly an income statement, is used to evaluate how well a business has done financially over the past year, alongside a balance sheet and cash flow statement.
Step-by-step explanation:
To determine how well a business has done over the past year, one would typically use a financial spreadsheet that includes various financial statements. The most crucial of these is the income statement, which provides a summary of the company's revenues and expenses over a specific period, and helps in evaluating profitability.
Another important spreadsheet might be the balance sheet, which details the business's assets, liabilities, and equity at the end of the fiscal year and can give insights into the company's financial health. Finally, the cash flow statement can show how changes in the balance sheet and income affect cash and cash equivalents, reflecting how well the company generates cash to fund its operations and pay its debts.