How Related
Financial Statements
How the Statements are Related and the Order Of Preparation
Discussed earlier, but it bears repeating. Because some of the statements use information from other statements, the statements are prepared in the following order:
1. Income Statement
2. Capital Statement or Statement of Stockholder's Equity
Uses Information from the Income Statement
3. Balance Sheet
Uses Information from the Capital Statement
4. Cash Flow Statement
Uses Information from the Balance Sheet, Capital Statement, and Income Statement
Next, Let's Discuss Audited Financial Statements
