Section B: Question 2. Understanding financial statements Allow about 7 minutes to answer this question The financial statements are connected (or linked). For example, the after-tax profit (or loss) is calculated on the income statement, and then shown as an addition to (or subtraction from) retained earnings on the statement of changes in equity. Required: Briefly explain how the statement of cash flows is connected to the other financial statements. [Use your own words - do NOT copy from lecture notes, from the textbook or from any other source.] Type your answers into the text box below (or type into a document and then copy and paste into the text box below-paste answer NOW before continuing) 4 MARKS