Link financial statements with an example

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Financial statements provide a snapshot of a company's financial health and performance.

Financial statements include the balance sheet, income statement, and cash flow statement.
The balance sheet shows a company's assets, liabilities, and equity at a specific point in time.
The income statement shows a company's revenues, expenses, and profits over a period of time.
The cash flow statement shows how cash is generated and used by a company over a period of time.
For example, a company's balance sheet may show that it has $100,000 in assets, $50,000 in liabilities, and $50,000 in equity.
The income statement may show that the company had $200,000 in revenues, $150,000 in expenses, and $50,000 in profits.
The cash flow statement may show that the company generated $75,000 in cash from operations, used $20,000 in investing activities, and used $5,000 in financing activities.

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