How do you reconcile or connect the balance sheet and the income statement?
A) By analyzing the net income on the income statement and comparing it to the retained earnings on the balance sheet
B) By comparing the revenue and expenses from the income statement to the assets and liabilities on the balance sheet
C) By analyzing the cash flow statement and comparing it to the equity section of the balance sheet
D) By comparing the cost of goods sold on the income statement to the inventory value on the balance sheet