Which of the following options correctly describes how the three statements connect?

• Ending cash on the cash flow statement is carried up into revenue, since cash collected during the period is what revenue measures
• Net income flows to the top of the cash flow statement and into retained earnings, and the statement's ending cash becomes the balance sheet cash line
• Depreciation reduces PP&E on the balance sheet and net income on the income statement, but it is left off the cash flow statement entirely because no cash ever changes hands
• The balance sheet feeds net income directly into the cash flow statement, and only the income statement pulls from prior-period balances
• Each statement is built from its own source data, so a change in one flows to the others only through footnote disclosures