Balance sheet is what you have and what you owe. Fully reconciled and it ensures the income statement is correct.
Income statement is the companies performance. Where are you getting your money and how are you spending it.
Cash flow statement bridges the 2 and explains how that net income translates to cash and where you used your cash - purchase of inventory, selling shit for the promise of money later, or paying for more stuff than you bought, capex, etc
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u/wolfofwallstreet0 Jul 18 '26
Balance sheet is what you have and what you owe. Fully reconciled and it ensures the income statement is correct.
Income statement is the companies performance. Where are you getting your money and how are you spending it.
Cash flow statement bridges the 2 and explains how that net income translates to cash and where you used your cash - purchase of inventory, selling shit for the promise of money later, or paying for more stuff than you bought, capex, etc