So, if you are thinking "yikes, I am not familiar with that word", don't worry. Here is a definition for financial statement articulation:

"Articulation means that the balance sheets and the income statements of any company are mathematically described in such a manner that the net income equals the owner's equity for that specific time period. The flow of information in between the balance sheets and the income statements is said to be articulation."

For this discussion, let's explore this concept further.

Your first post should be your explanation of what this means in terms of the actual line items on the financial statements. We'll use the financial statements from PICTURES.

please help me

thanks

Accounting Cycle of a Merchandising Business and Budgeting St 220 Chapter 5 Copier Solutions Income Statement For Period Ended 03/31/- Yearly Amount Yearly Percent Monthly Percent Figure 5.18 Income Statement Monthly Amount 162,784.20 -1,038.35 -1,199.16 160,546.69 103.18 -1.99 -1.19 100.00 101.39 -0.65 -0.75 100.00 24,635.75 -475.00 -283.16 23,877.59 Operating Revenue Sales Sales Returns & Allow. Sales Discount Total Operating Revenue Cost Cost of Merchandise Sold Total Cost Gross Profit 90,907.28 90,907.28 69,639.41 56.93 56.93 43.07 56.62 56.62 43.38 13,593.22 13,593.22 10,284.37 Operating Expenses Advertising Expense Miscellaneous Expense Rent Expense Telephone Expense Heating & Lighting Exp. Salaries Expense Supplies Expense Insurance Expense Deprec. Exp. Wrhs. Eq. Deprec. Exp. Office Eq. Total Operating Expenses Net Income from Operations Other Revenue Interest Income 135.00 45.00 1,250.00 679.10 412.38 4,599.22 410.22 246.00 648.37 232.00 8,657.29 1,627.08 0.57 0.19 5.24 2.84 1.73 19.26 1.72 1.03 2.72 0.97 36.26 6.81 945.00 270.25 3,750.00 2,437.30 1,436.71 12,806.08 1,146.52 881.00 3,100.37 1,027.00 27,800.23 41,839.18 0.59 0.17 2.34 1.52 0.89 7.98 0.71 0.55 1.93 0.64 17.32 26.06 0.01 17.00 17.00 0.07 Other Expense Interest Expense Net Income 173.15 1,470.93 0.73 6.16 833.15 41,023.03 0.52 25.55 Step 5: Display the statement of owner's equity. Select the Statement of Owner's Equity report, then click OK. The statement of owner's equity is shown in Figure 5.19. Figure 5.19 Statement of Owner's Equity Copier Solutions Statement of Owner's Equity For Period Ended 03/31/- Susan Taylor, Capital (Beg. of Period) Susan Taylor, Drawing Additional Investment Net Income Susan Taylor, Capital (End of Period) 93,467.03 -6,700.00 10,000.00 41,023.03 137,790.06 Accounting Cycle of a Merchandising Business and Budgeting Chapter S 221 Step 6: Display the balance sheet. Select the Balance Sheet report, then click OK. The balance sheet is shown in Figure 5.20. Copier Solutions Balance Sheet 03/31/- Figure 5.20 Balance Sheet Assets Cash Notes Receivable Accounts Receivable Merchandise Inventory Supplies Prepaid Insurance Total Current Assets Warehouse Equipment Accum. Dep. - Wrhs. Eq. Office Equipment Accum. Dep. - Office Eq. Total Plant Assets Total Assets 36,892.88 3,350.00 37,264.24 48,642.46 2,065.00 1,309.23 129,523.81 33,300.00 -8,734.37 9,650.00 -2,757.00 31,458.63 160,982.44 Liabilities Accounts Payable Sales Tax Payable Salaries Payable Total Current Liabilities Note Payable Total Long-Term Liabilities Total Liabilities 6,430.50 2,501.72 495.80 9,428.02 13,764.36 13,764.36 23,192.38 Owner's Equity Susan Taylor, Capital Susan Taylor, Drawing. Net Income Total Owner's Equity Total Liabilities & Equity 103,467.03 -6,700.00 41,023.03 137,790.06 160,982.44 Step 7: Display the budget report. Select the Budget Report, and then click OK. The budget report is shown in Figure 5.21. Accounting Cycle of a Merchandising Business and Budgeting St 220 Chapter 5 Copier Solutions Income Statement For Period Ended 03/31/- Yearly Amount Yearly Percent Monthly Percent Figure 5.18 Income Statement Monthly Amount 162,784.20 -1,038.35 -1,199.16 160,546.69 103.18 -1.99 -1.19 100.00 101.39 -0.65 -0.75 100.00 24,635.75 -475.00 -283.16 23,877.59 Operating Revenue Sales Sales Returns & Allow. Sales Discount Total Operating Revenue Cost Cost of Merchandise Sold Total Cost Gross Profit 90,907.28 90,907.28 69,639.41 56.93 56.93 43.07 56.62 56.62 43.38 13,593.22 13,593.22 10,284.37 Operating Expenses Advertising Expense Miscellaneous Expense Rent Expense Telephone Expense Heating & Lighting Exp. Salaries Expense Supplies Expense Insurance Expense Deprec. Exp. Wrhs. Eq. Deprec. Exp. Office Eq. Total Operating Expenses Net Income from Operations Other Revenue Interest Income 135.00 45.00 1,250.00 679.10 412.38 4,599.22 410.22 246.00 648.37 232.00 8,657.29 1,627.08 0.57 0.19 5.24 2.84 1.73 19.26 1.72 1.03 2.72 0.97 36.26 6.81 945.00 270.25 3,750.00 2,437.30 1,436.71 12,806.08 1,146.52 881.00 3,100.37 1,027.00 27,800.23 41,839.18 0.59 0.17 2.34 1.52 0.89 7.98 0.71 0.55 1.93 0.64 17.32 26.06 0.01 17.00 17.00 0.07 Other Expense Interest Expense Net Income 173.15 1,470.93 0.73 6.16 833.15 41,023.03 0.52 25.55 Step 5: Display the statement of owner's equity. Select the Statement of Owner's Equity report, then click OK. The statement of owner's equity is shown in Figure 5.19. Figure 5.19 Statement of Owner's Equity Copier Solutions Statement of Owner's Equity For Period Ended 03/31/- Susan Taylor, Capital (Beg. of Period) Susan Taylor, Drawing Additional Investment Net Income Susan Taylor, Capital (End of Period) 93,467.03 -6,700.00 10,000.00 41,023.03 137,790.06 Accounting Cycle of a Merchandising Business and Budgeting Chapter S 221 Step 6: Display the balance sheet. Select the Balance Sheet report, then click OK. The balance sheet is shown in Figure 5.20. Copier Solutions Balance Sheet 03/31/- Figure 5.20 Balance Sheet Assets Cash Notes Receivable Accounts Receivable Merchandise Inventory Supplies Prepaid Insurance Total Current Assets Warehouse Equipment Accum. Dep. - Wrhs. Eq. Office Equipment Accum. Dep. - Office Eq. Total Plant Assets Total Assets 36,892.88 3,350.00 37,264.24 48,642.46 2,065.00 1,309.23 129,523.81 33,300.00 -8,734.37 9,650.00 -2,757.00 31,458.63 160,982.44 Liabilities Accounts Payable Sales Tax Payable Salaries Payable Total Current Liabilities Note Payable Total Long-Term Liabilities Total Liabilities 6,430.50 2,501.72 495.80 9,428.02 13,764.36 13,764.36 23,192.38 Owner's Equity Susan Taylor, Capital Susan Taylor, Drawing. Net Income Total Owner's Equity Total Liabilities & Equity 103,467.03 -6,700.00 41,023.03 137,790.06 160,982.44 Step 7: Display the budget report. Select the Budget Report, and then click OK. The budget report is shown in Figure 5.21