Finance Analyst Question: Tell us how is the income statement linked to the balance sheet? Finance Analyst Interview QuestionAnswer: Net income flows into retained earnings. Previous QuestionNext QuestionExplain what are your long term career goals?Explain me why do capital expenditures increase assets (PP&E), while other cash outflows, like paying salary, taxes, etc., do not create any asset, and instead instantly create an expense on the income statement that reduces equity via retained earnings?
