|
The
Balance Sheet
The balance sheet
is a profile of the financial situation of the corporation at a certain
point in time. It is divided into two parts: Assets, and Liabilities
& Shareholders' Equity.
Assets are the economic
resources that the corporation owns, and liabilities are what the corporation
owes. "Current assets" and "current liabilities" signify money
that will be received or paid within a year of the date on the balance
sheet.
Shareholders' Equity
is all the corporation's assets minus what the corporation owes. This
is basically the amount invested in the organization and the net earnings
that have not been withdrawn. The Shareholders' Equity is important
in determining the wealth of the company.
In general, the
balance sheet allows you to see the overall picture of the financial
operation. The sum of the total assets always equals the sum of the
total liabilities and shareholders' equity.
Below
is a sample balance sheet.
Click on the terms to learn what they mean.
| |
|
|
|
|
Assets
|
|
2000
|
1999
|
| Current
Assets |
|
|
|
Cash
and cash equivalents |
1,000,000
|
700,000
|
|
Accounts
receivable |
3,000,000
|
2,500,000
|
|
-Trade |
500,000
|
600,000
|
|
-Natural
resources |
2,000,000
|
2,200,000
|
|
-Income
tax fund receivable |
500,000
|
400,000
|
|
Inventories |
100,000
|
100,000
|
|
Prepaid
expenses |
400,000
|
500,000
|
|
Total
Current Assets |
7,500,000
|
7,000,000
|
|
-
|
|
|
| Investment
in subsidiaries/affiliates |
3,500,000
|
3,200,000
|
| Goodwill |
1,000,000
|
1,200,000
|
| Marketable
Securities |
30,000,000
|
28,000,000
|
| Property
and Equipment at cost |
|
|
|
Land |
3,000,000
|
3,000,000
|
|
Buildings |
1,000,000
|
1,200,000
|
|
Machinery
& Equipment |
500,000
|
400,000
|
| |
Leasehold
improvements |
1,500,000
|
1,000,000
|
|
Total
Assets |
48,000,000
|
45,000,000
|
|
-
|
|
|
| Liabilities
and Shareholder's Equity |
|
|
| Current
Liabilities |
2,000,000
|
1,800,000
|
|
Accounts
payable |
2,000,000
|
1,800,000
|
|
Accrued
expenses |
400,000
|
350,000
|
|
Short-term
notes payable |
250,000
|
350,000
|
|
Unearned
income and deposits |
2,000,000
|
200,000
|
|
Line
of credit |
500,000
|
2,500,000
|
|
Total
Current Liabilities |
7,500,000
|
7,000,000
|
|
-
|
|
|
| Long-term
debt, excluding current portion |
|
|
|
Deferred
income taxes payable |
600,000
|
500,000
|
|
Capital
lease obligation |
300,000
|
200,000
|
|
Minority
interest |
600,000
|
500,000
|
|
Non-current
notes payable |
1,000,000
|
800,000
|
|
Total
Liabilities |
10,000,000
|
9,000,000
|
|
-
|
|
|
| Stockholder's
Equity |
|
|
|
Common
stock |
6,000,000
|
5,000,000
|
|
Contributed
or "paid-in" capital |
25,000,000
|
23,000,000
|
|
Retained
earnings |
2,000,000
|
2,200,000
|
|
Unrealized
gain on marketable securities |
4,000,000
|
5,000,000
|
|
Commitments
and contingencies |
1,000,000
|
800,000
|
| |
Total
Stockholder's Equity |
38,000,000
|
36,000,000
|
|
-
|
|
|
| Total
Liablilities and Stockholders' Equity
|
48,000,000
|
45,000,000
|
|
