Brothers want to understand how financial statements are related? Just look at this chart!
Select quality stocks, the income statement starts from revenue, step by step calculating net profit, reflecting the profit process;
The balance sheet is divided into liabilities, equity, and assets, with various items interrelated;
The cash flow statement records the flow of funds and is closely connected to the other two statements in operating, financing, and investing activities.
The three statements are intertwined, together presenting the complete picture of the company's finances, grasping the relationship logic!