Relationship between the different financial statementsO
Hi All, just prepping for an interview, trying to review the relationship between the different statements. Let me know if this is right, or please add anything i'm missing. Thanks.
-Net income increases the Retained Earnings statement. Net losses and dividend payments decrease Retained Earnings statement.
- RE then similarly affects the SE portion of the balance sheet,
- statement of cash flows affect the cash portion of the assets in the balance sheet with investing cash, affects the L+SE portion of balance sheet with financing cash, and income statement with operating cash.
Anything else I am missing? Thanks!