The Income Statement is used to prepare the:

Question

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The Income Statement provides information about a company's revenues, expenses, and net income. This information is used to calculate the amount of earnings that are retained by the company, which is reported on the Statement of Retained Earnings. Additionally, the net income figure from the Income Statement is used in the preparation of the Statement of Cash Flows to calculate the cash flow from operating activities. Therefore, the Income Statement is used to prepare both the Statement of Retained Earnings and the Statement of Cash Flows.

The Income Statement Is Used to Prepare The