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Figure 3.23 Alice’s Cash Flow Statements: Comparison Over Time
Figure 3.24 Alice’s Balance Sheets: Comparison Over Time
Starting with the income statement, Alice’s income has increased. Her income tax
withholding and deductions have also increased, but she still has higher disposable
income (take-home pay). Many of her living expenses have remained consistent; rent
and entertainment have increased. Interest expense on her car loan has increased, but
since she has paid off her student loan, that interest expense has been eliminated, so her