Framework
How the three statements connect
The question it answers
How do profit, cash and the balance sheet relate?
- Origin
- Elliott and Elliott, 2019
- Diagram type
- Process by phase
- Level of analysis
- Firm
- Topics
- Corporate finance
Diagram
How the three statements connect
- How the statements connect
- Income statement: net income
- Cash flow statement: start from net income, add back depreciation, adjust working capital
- Balance sheet: closing cash; retained earnings = profit − dividends
Sources
References
Listed A–Z by author surname, Harvard style. A source with a DOI links to https://doi.org/…; one without links to its page or says plainly that it has no DOI.
- Elliott, B. and Elliott, J. (2019) Financial Accounting and Reporting, 19th edn. Harlow: Pearson.No DOISource page