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Balance Sheet Statement
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1:15
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Edspira
How the Income Statement and Balance Sheet are Connected | Example
The income statement and the balance sheet are connected in that: net income from the income statement affects retained earnings on the balance sheet. You can see that here with Amazon. At the beginning of 2020, Amazon had retained earnings of $31.2 billion. It then posted net income of $21.3 billion for 2020. Thus, Amazon’s retained earnings ...
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