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How are the income statement and balance sheet important if "Cash is King"?

How are the income statement and balance sheet important if "Cash is King"?

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The income statement and balance sheet are quite important even if you know cash is king. It is because the income and balance sheet help you to keep the details of the transactions. In the absence of these details, you would not be having any idea about the cash inflows and cash outflows. Also, it will be hard to keep a track of receivables. The income statement and balance sheet are also helpful in knowing the true value of the company. Additionally, the income statement and balance sheet are kept to comply with the law. Income statement and balance sheet are subject to evaluation in case of any tax-related inquiry.

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