Question

What is the purpose of the provided income statement and balance sheet data?

1) To calculate the company's current-year income
2) To compare the company's current and prior year financial performance
3) To determine the company's current assets and liabilities
4) To analyze the company's cash flow

Answer 1

The purpose of the provided income statement and balance sheet data is to compare the company's current and prior year financial performance.

Step-by-step explanation:

The purpose of the provided income statement and balance sheet data is to compare the company's current and prior year financial performance. This data helps in assessing how well the company has performed over time and whether it has improved or declined. By analyzing the income statement and balance sheet, you can determine if the company's revenue has increased or decreased, if its expenses have gone up or down, and if its assets and liabilities have changed. This information is vital for evaluating the company's financial health and making informed business decisions.