Macquarie Group Interview Question: How does the income statement... | Glassdoor

Interview Question

Investment Banking Summer Analyst Interview(Student Candidate) New York, NY

How does the income statement interact with the cash flow

  statement.
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Interview Answer

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1

Trick question: The income statement only interacts with the cash flow when looking at the final picture. More or less, you need both to have a complete balance sheet. The income statement gives you your retained earnings number on the balance sheet, and the cash flow statement gives you the cash amount on the balance sheet. So in simple terms, they do not interact directly, but when combined, balance your balance sheet. DEBITS = CREDITS :)

Anonymous on Oct 21, 2015

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