Accounting:Connection between income statement and cash flow

In general, how are the income statement and cash flow statement connected?

Question options:

  • Increases in net income, the bottom of the income statement, result in increases in cash from operations
  • The connection is through the balance sheet. You have to have an increase in assets before the cash flow statement changes
  • There is no connection between the income and cash flow statement.
  • Increases in tax result in increased need for cash from operations
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