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hey everybody welcome back to the corporate finance academy today we are going to talk about how the financial statements link together so the income statement balance sheet and cash flow statement how does that work how are they all linked together [Music] okay so just like we said beginning we are going to talk through how the income statement the balance sheet and the cash flow statement linked together and as we go along were going to show you some examples uh in a template to how that actually happens in microsoft excel its easier when you can visualize it so how the financials work together the statements are very much dependent on one another and if you really want to know how to analyze the company and how financial statements work you will have to know how this linking works its critical so if we start with the income statement the income statement feeds both the balance sheet and the statement of cash flows so lets look at these first two line items here with net income