UNDERSTANDING BALANCE SHEETS AND INCOME STATEMENTS

40 FINANCE FOR EXECUTIVES 1998, 1999, and 2000. Each income statement spans a full year, in this case, from January 1 to December 31. Two balance sheets flank an income statement: an open-ing, or beginning, balance sheet on December 31 of the previous year and a closing, or ending, balance sheet on December 31 of the same year.3 We have a ... ................
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