What can I say back to reply back to my peer to add to the conversation In my opinion, the balance sheet is more important than the statement of cash flow. The balance sheet shows a quick glimpse of how the company is doing financially during a certain time by demonstrating the company's assets and liabilities over a specific period. The balance sheet can quickly determine if a company is on the verge of bankruptcy or is thriving. While a cash flow statement is also important, it would be second best, because it demonstrates a detailed analysis of cash uses and sources that are used in a specific period. The income statement does not relay the liabilities and assets of the company and only shows the revenues and profitability of a company's earnings. This income statement is useful in determining a company's profit and loss but does not give a true glimpse of the financial health of the company