Respond to each classmate 100 words a piece This is the question they had to answer. What is the relationship between the balance sheet, income statement, statement of cash flows, and statement of retained earnings? Classmate 1 Welcome to the first week!!! Here’s to a successfully next 7 weeks!!!! The financial statements are comprised of the income statement, balance sheet, statement of cash flows and statement of retained earnings. The net income figure in the income statement is added to the retained earnings line item in the balance sheet, which alters the amount of equity listed on the balance sheet. The net income figure also appears as a line item in the cash flows from operating activities section of the statement of cash flows. Changes in various line items in the balance sheet roll forward into the cash flow line items listed on the statement of cash flows. For example, an increase in the outstanding amount of a loan appears in both the liabilities section of the balance sheet (as an ongoing balance) and in the cash flows from financing activities section of the statement of cash flows (in the amount of the incremental change). The ending cash balance in the balance sheet also appears in the statement of cash flows. The purchase, sale, or other disposition of assets appears on both the balance sheet (as an asset reduction) and the income statement (as a gain or loss, if any). Classmate 2 I have been working in banking since 2015. When a customer comes to me and is looking to take out a commercial loan with the bank I as for their financial statements. Essentially I am asking for their balance sheet, income statement, statement of cash flows, and statement of retained earnings. I am wanting to know how much money is being earned, when is the money being earned, and also how the money being allocated when it is going on. The balance sheet, income statement, statement of cash flows, and statement of retained earnings will tell all your business’ business. The income statement, or earnings statement and sometimes even called the profit and loss statement, tells the reader or analyst the profitability of a business organization for a stated period of time. It could be quarterly, semi-annually, or annually. The balance sheet will lists the company’s assets, liabilities, and equity. This is going to include accounts payable, accounts receivable, and any other debits and credits. The statement of cash flows shows the cash that is coming in from sales and profits and the cash that is coming out of the business that is supporting different things such as operating, investing, and financing activities. This can also be supported by bank statements or tax returns. The statement of retained earnings is going to reflect the changes in a companies finances over a period of time, with or without an explanation. Right now, a lot of companies maybe showing a change due to the economic impact of covid.