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Continuing from his video on the income statement, Sal reviews the scenario from the last clip before expanding on the net income concept. He introduces the term "earnings" and calculates earnings per share for the hypothetical company. Scholars make the connections between the income statement and the balance sheet, examining the interconnectedness of equity, liability, and assets. Sal illustrates the relationship between earnings and equity, leading watchers to the next vide on the cash flow statement.
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