Balance sheets, income statements — decoded.
Every company tells its story through three financial statements. Think of them as the company's report card, diary, and bank statement.
How much did we earn vs spend?
Covers a period (month, quarter, year)
What do we own vs owe?
Snapshot at a specific date
Where did our cash actually go?
Covers a period (tracks cash movement)
🔗 These three statements are interconnected. Net income from the Income Statement flows into the Balance Sheet through Retained Earnings, and into the Cash Flow Statement.