All of the following statements make correct linkages among the three major financial statements, except: Changes in working capital accounts on the balance sheet will be reflected as operating cash flows on the statement of cash flows. Net income on the income statement will increase retained earnings on the balance sheet. Long-term debt that is repaid will reduce liabilities on the balance sheet and will also appear as a cash outflow from financing activities on the statement of cash flows. Dividends paid will reduce retained earnings on the balance sheet, but won't appear as a financing item in the statement of cash flows. Changes in the cash balance on the balance sheet from one period to another will equal the bottom line cash flow on the statement of cash flows