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Level 1
Financial Statement Flow

The Waterfall

Master how Income Statement → Retained Earnings → Balance Sheet flow together. Place each account where it belongs and watch the statements come alive.

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The Flow

Master the waterfall: Income → Retained Earnings → Balance Sheet

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The Links

See how one statement feeds the next

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The Balance

Assets = Liabilities + Equity (always!)

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Income Statement

Captures FLOW over a period. Revenue - Expenses = Net Income

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Retained Earnings

The bridge. Beginning + Net Income - Dividends = Ending R.E.

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Balance Sheet

A SNAPSHOT. Assets = Liabilities + Equity (must balance!)