Alfred Hansen publishes an online travel blog. In need of cash, the business applies for a loan with National Bank. The bank requires borrowers to submit an income statement, statement of retained earnings, balance sheet, and statement of cash flows. With little knowledge of accounting, Alfred Hansen, a stockholder, does not know how to proceed.

Requirements 

1. Is there a specific order in which the financial statements must be prepared? 

2. Explain how to prepare each statement.