What's the link between Financial statements (Income Statement , Balance sheet & Cash flow)?

Financial statement report that what has actually happened to assets,dividend,and earning ,

Balance sheet,income statement,statement of retain earning,and statement of cash flow are the four basic financial statement .these statement given the accounting picture of the firm and financial position.

A statement of the firm financial position at a specific point in time (Balance sheet).

A statement summarizing the firm revenue and expense our account period,(Income statement).

That portion of the firm earning that has been saved rather than paid out it dividend(statement of retain...)

The actual net cash flow is opposite to accounting net income that a firm generate some specified period(statement of cash flow) 

The income statement, balance sheet and cash flow statement are all interrelated. The income statement describes how the assets and liabilities were used in the stated accounting period. The cash flow statement explains cash inflows and outflows, and it will ultimately reveal the amount of cash the company has on hand, which is also reported in the balance sheet. By themselves, each financial statement only provides a portion of the story of a company's financial condition.

The link between Financial statements (Income Statement , Balance sheet & Cash flow), is defined as the net income or net loss is transferred to the equity side in the retained earning, and the closing balance of cash flow is transferred to the balance sheet's current assets side. 

Balance Sheet, or Statement of Financial Position, is directly related to the income statement, cash flow statement and statement of changes in equity.

Assets, liabilities and equity balances reported in the Balance Sheet at the period end consist of:

• Balances at the start of the period;
• The increase (or decrease) in net assets as a result of the net profit (or loss) reported in the income statement;
• The increase (or decrease) in net assets as a result of the net gains (or losses) recognized outside the income statement and directly in the statement of changes in equity (e.g. revaluation surplus);
• The increase in net assets and equity arising from the issue of share capital as reported in the statement of changes in equity;
• The decrease in net assets and equity arising from the payment of dividends as presented in the statement of changes in equity;
• The change in composition of balances arising from inter balance sheet transactions not included above (e.g. purchase of fixed assets, receipt of bank loan, etc).
• Accruals and Prepayments
• Receivables and Payables

Income Statement, or Profit and Loss Statement, is directly linked to balance sheet, cash flow statement and statement of changes in equity.

The increase or decrease in net assets of an entity arising from the profit or loss reported in the income statement is incorporated in the balances reported in the balance sheet at the period end.

The profit and loss recognized in income statement is included in the cash flow statement under the segment of cash flows from operation after adjustment of non-cash transactions. Net profit or loss during the year is also presented in the statement of changes in equity.

Statement of Changes in Equity is directly related to balance sheet and income statement.

Statement of changes in equity shows the movement in equity reserves as reported in the entity's balance sheet at the start of the period and the end of the period. The statement therefore includes the change in equity reserves arising from share capital issues and redemptions, the payments of dividends, net profit or loss reported in the income statement along with any gains or losses recognized directly in equity (e.g. revaluation surplus).

Statement of Cash Flows is primarily linked to balance sheet as it explains the effects of change in cash and cash equivalents balance at the beginning and end of the reporting period in terms of the cash flow impact of changes in the components of balance sheet including assets, liabilities and equity reserves.

Cash flow statement therefore reflects the increase or decrease in cash flow arising from:

• Change in share capital reserves arising from share capital issues and redemption;
• Change in retained earnings as a result of net profit or loss recognized in the income statement (after adjusting non-cash items) and dividend payments;
• Change in long term loans due to receipt or repayment of loans;
• Working capital changes as reflected in the increase or decrease in net current assets recognized in the balance sheet;
• Change in non current assets due to receipts and payments upon the acquisitions and disposals of assets (i.e. investing activities)