THREE 15 MARKS The financial statements for ABC Ltd. for the current year include the following: ENKARE Ltd. Income Statement (in thousands) Item Amount Revenue 30,000 Cost of Goods Sold 18,000 Gross Profit 12,000 Operating Expenses 6,000 Net Income 4,000 ENKARE Ltd. Balance Sheet (in thousands) Item Amount Current Assets 10,000 Non-Current Assets 20,000 Total Assets 30,000 Current Liabilities 8,000 Non-Current Liabilities 10,000 Total Liabilities 18,000 Total Equity 12,000 a) Explain the relationship between the income statement and the balance sheet. How do the transactions recorded in the income statement affect the balance sheet