How is the balance sheet linked to the other financial statements?

a)	The cash on the balance sheet is reported on the income statement and the statement of cash flows.

b)	Net income increases retained earnings on the statement of retained earnings, which increases retained earnings on the balance sheet.

c)	Retained earnings is added to total liabilities and reported on the balance sheet in the liabilities section, immediately under the asset section.

d)	There is no link between the balance sheet and the other statements, as each contains different accounts and provides different information.

e)	The amount of retained earnings reported on the balance sheet is equal to net income, which is reported on the income statement as well as the statement of retained earnings.