how is the income statement (I/S) related to the balance sheet (B/S)

answer structure: definition, explanationdefinition: I/S tells you what happened throughout the year, B/S is a snapshot of financial position of a firm at a specific dateexplanation: bottom line on I/S (net income) affects shareholders' equity (SE) on B/Seg positive net income adds to SE value of the previous financial year, vice versa