The income statement measuring the organizations performance such as determining profits and losses. The balance sheet does this as well, except that it measures the net worth, which is based on assets. The income statement measures the performance by showing the profitability of a company based on its revenue (income).The other advantage of the income statement is that it shows the flow of revenues and expenses over a period of time.

With that said, if the organization was applying for a loan, what would be the purpose of the financing institution looking at both the income statement and balance sheet if they basically show the same information?