Change December's rent and follow it from the income statement to the balance sheet.
$4,400
Net income
$4,200
Ending balance
$40,400
Total assets
$4,800
Ending cash
The comes first: revenues minus expenses equals . That net income is the first line of the , which subtracts dividends to get an ending balance.
Ending retained earnings then lands on the , inside equity. The comes last and checks the balance sheet's cash figure against operating, investing, and financing activity.