You start with net income from your income statement. Then you adjust all non-cash entries (since no cash actually changed hands) until you get to your ending cash balance (which ties to the balance sheet). I ties the income statement to the balance sheet.
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You start with net income from your income statement. Then you adjust all non-cash entries (since no cash actually changed hands) until you get to your ending cash balance (which ties to the balance sheet). I ties the income statement to the balance sheet.