1. Define an income statement and balance sheet. What are the differences? Can you please provide an example of how they are related to each other? 2. Differentiate between net cash flow and accounting profit 3. Identify and briefly explain the three different categories of activities shown in the statement flow. 4. How does EVA differ from accounting profit? 5. What is the statement of equity, and what information does it provide? 6. A firm had a retained earnings balance of $4mln in the previous year. In the current year, its net income is $2.5 million. If it pays $1million in common dividends in the current year, what is its resulting retained earnings balance