So we've just finished talking about the income statement. Again, it can look a little bit complex when we pick one up, but, actually, it's quite simple. It helps us understand revenues. It helps us understand what costs were incurred to generate those revenues. And it helps us understand what's left over, or net income, or net earnings. And the company looks at its net income or its net earnings. And says, I've generated an increase in owner's equity by operating my businesses this period. I can choose to keep that income or earnings. In which case it deposits it in the retained earnings account on the balance sheet. Or it can choose to give some back to the owners or investors in the form of dividends. Recall our financial statement framework that we've previously talked about. We have a balance sheet at the beginning of the period that shows a financial position at that specific point in time. It's like taking a snapshot. We have a balance sheet at the end of the period. Again, at that specific point in time, just like taking a snapshot. And now we've introduced the income statement. Which helps us understand what happened during the period between the beginning of the period and the end of the period. That income statement helps us understand the change in a very important balance sheet account, Retained earnings. So the company starts the year with a certain balance in retained earnings on its beginning balance sheet. It operates its business for a year and generates some additional earnings. It can decide to keep those earnings, put them in retained earnings account and retain them there. In which case, we would better understand the ending retained earnings balance. Or alternatively, it could pay those earning out in dividends to its shareholders. So our beginning retained earnings, Plus our net income, NI, our net earnings, minus our dividends. Would be equal to our ending retained earnings on the ending balance sheet. So the income statement gives us a video clip of how we got from beginning retained earnings. To the ending retained earnings balance.