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Guide to Financial Statements (2 of 2)

Motley Fool Money

How the Cash Flow Statement Relates to the Balance Sheet

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The cash flow statement relates to the balance sheet. Retained earnings on the balance sheet increases shareholders equity. Gross margins are gross profit dollars divided by sales. Return on assets is a measure of profitability and efficiency. The motley fool may have formal recommendations for against stocks they talk about. So don't buy oursell stocks based solely on what you hear.

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