1.6 Preparing Financial Statements Which of the following is TRUE? 13 O Profit from the income statement flows into the statement of owner's equity. The ending owner's equity balance then flows into the balance sheet. O The cash flow statement should be prepared first because is determines the sources of cash. That information is then used in preparing the income statement. O The first three financial statements prepared cover a point in time; the last one, the balance sheet, shows a specific period of time. O The income statement does not have to be prepared first. Financial statements can be prepared in any order. Save for Later Submit Answer