5. The primary purpose of a is to provide financial information about the cash receipts and cash payments of a business. 6. W hat are the advantages to a business of being formed as a corporation? What are the disadvantages? 7. How are each of the following financial statements interrelated? (a) Retained earnings statement and income statement. (b) Retained earnings statement and balance sheet. (c) Balance sheet and statement of cash flows 8. Which three items affect retained earnings, and how do they affect it