Summer Intern Interview
the income statement shows the company's income generated over a period of time. B/S shows a snapshot at a specific point in time with the three main classifications as Assets = Liabilities + owners equity. The cash flow statement is a magnification of the balance sheet cash account under assets. All the three statements are interlinked through several means. For instance, the depreciation expense in the I/S is calculated based off of the PPE accounts in the B/S. The net income amount from the income statements is added to the cash balance from the previous B/S in the CF statement and then various expenses and revenues are added to arrive at CFO and then CFI and CFF are added to arrive at the final cash ba;ance which ends up on the B/S for the current period.
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