Whether this year is profitable depends on the net profit on the income statement, the accumulated profit and loss, and the undistributed profit on the balance sheet. It means profit, that is, credit balance. A negative value indicates a loss, that is, a debit balance.
Functions of financial statements:
Systematically revealing the financial status, operating results and cash flow of an enterprise in a certain period is beneficial for managers to understand the completion of various task indicators of their own units and evaluate their operating performance, so as to find problems in time, adjust their business direction, formulate measures, improve their management level and economic benefits, and provide a basis for economic forecasting and decision-making.