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How do the three financial statements fit together? What is the relationship between the balance sheet, the income statement, and the cash flow statement? That is the topic of this Finance Storyteller video! Lets start with the opening balance sheet for the year, on January 1st. A balance sheet is a picture at a point in time of what we own and what we owe. Typical line items on the left, in the assets area, what we own, are: cash, receivables (sometimes also named accounts receivable or debtors), inventory, and fixed assets (or plant and equipment). Typical line items on the right, in the liabilities area, what we owe, are: payables (sometimes called accounts payable or creditors), accrued liabilities, debt and equity. The total monetary value of what we own on the left has to match the monetary value of what we owe on the right. The closing balance sheet for the year, on December 31st, has the same format, but will have different numbers. The balance sheet is a picture at a point i