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To successfully answer this question, make sure you have the financial accounting fundamentals down pat. Poor answers are ones that are too wordy or miss key linkages.

The bottom line of the income statement is net income. Net income links to both the balance sheet and cash flow statement.

In terms of the cash flow statement, net income is the first line as it is used to calculate cash flows from operations. Also, any non-cash expenses or non-cash income from the income statement i. Any balance sheet items that have a cash impact i.

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Our programs are used by thousands of undergraduates, MBAs, investment bankers, and other finance professionals, and are designed to deliver the financial skills that will give you a competitive edge as you pursue your career.

Get instant access to video lessons taught by experienced investment bankers. Call us at No Thanks 7 free financial modeling lessons! Investment Banking Interview Financial Statements Lesson: How to Answer this Question To successfully answer this question, make sure you have the financial accounting fundamentals down pat.

DCF model, DCF Valuation, Discounted Cash Flow Analysis

Sample great answer The bottom line of the income statement is net income. Written by The Wall Street Prep Team support wallstreetprep.

Cash flow - Wikipedia

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