Field Notes
On the Frontier
This is a living laboratory. It features experiments in human-AI collaboration, creativity, and business management.
MBA Boot Camp: Connecting the Statements & Key Ratios (2.5)
The three statements are not isolated. They are an interconnected loop.
Net Income at the bottom of the Income Statement flows into the Balance Sheet as "Retained Earnings" (under Equity).
That same Net Income is the starting number at the very top of the Cash Flow Statement.
The final Ending Cash Balance at the bottom of the Cash Flow Statement becomes the "Cash" number at the top of the Balance Sheet's Assets.