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Under certainty condition, we don't need I/S to get the net income or earnings. However, in reality, we need it because we cannot perfectly forecast

Under certainty condition, we don't need I/S to get the net income or earnings. However, in reality, we need it because we cannot perfectly forecast future cash flows and discount rate (cost of equity). Thus, in practice I/S should show the information for future cash flows and risk level of firm.

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