Hi,

My question is "how items from the income statement will impact the balance sheet".

Thanks.

Directly, they won't.

Indirectly, net income from the income statement increases equity, which is on the balance sheet.

Items for the p/l have a direct impact on the balance sheet. Increase or decrease in assets. Liabilities and retained must revert back to income/loss for finanacial income loss determines your current year e&p. increase in sakes would probably support an increase in act's rec.. . purchases to cover new sales will have an impact on payable and inventories. As such the first responder did adequately explain anything

And that is what I call "indirect," yes. Sales do not DIRECTLY go on the Balance Sheet. They INDIRECTLY affect other items that will end up on the Balance Sheet.

The fact that you may "see" this differently does not make my answer incorrect. Regardless of whether an answer is adequate or not, it's not necessarily to point out that you think it's not. The only reason you are doing so is cause you're ticked off.

Items from the income statement are used in calculating the retained earnings which directly affect equity.