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assets that are consumed in providing the firm's products
or services. The income may be either used to increase
owners' equity in the firm or distributed to owners as
dividends.

So, Income = Change in Retained Earnings + Dividends
to Owners

The series of equations then defines the relationship
between the balance sheet and the income statement.
This relationship can be obtained by chaining together
the basic accounting equations.

So, Income =Change in Retained Earnings + Dividends
to Owners

But, Retained Earnings = Owners' Equity - Contributed
Capital

And, Owners' Equity = Assets - Liabilities

Thus, Retained Earnings = Assets - Liabilities -

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