Balance Sheet
A financial statement that that summarizes a company's short and long term assets, short and long term liabilities, and aggregate shareholders'equity at a given point in time. The balance sheet gives investors an idea as to the company's long term viability by providing information concerning what the company owns and owes, as well as the amount invested in the company by the shareholders.
The main components of the balance sheet are assets, liabilities, and shareowners equity. Assets are any item of economic...More value owned by the company. Examples are cash, securities, accounts receivable, inventory, office equipment, real estate, vehicles, and other property, including, in some instances, intangible items such as trademarks, goodwilland intellectual property. Assets are commonly categorized as follows: current assets (cash and other items that are easily converted into cash), long-term assets (not easily salable, real estate, plant, equipment), prepaid and deferred assets (pre-funded expenditures such as insurance, rent, interest), and intangible assets (trademarks, patents, goodwill).
Liabilities are obligations incurred by a company for which the company is legally bound to settle.Liabilities include accounts payable, taxes owed, wages, and accrued expenses (expenses not yet incurred). Current liabilities consist of all are debts (obligations) payable by the company within one year, while long-term liabilities are debts that are payable (due to be settled) over a period longer than twelve months.
Shareholder's equity represents a company's common stock equity as it appears on a balance sheet and is equal to the difference of total company assets minus liabilities, preferred stock, and intangible assets such as goodwill.
The financial information represented in the balance sheet must adhere follow the following formula:
Total Assets = Total Liabilities + Shareholders' Equity
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H&W Industries Sheet |
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Assets |
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Cash |
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Checking Account |
1,256.00 |
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Savings Account |
8,600.00 |
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Petty Cash |
100.00 |
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Total Cash |
9,956.00 |
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Other Assets |
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Vehicles |
11,385.00 |
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Buildings |
50,483.25 |
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Equipment |
43,249.04 |
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Furnishings |
13,317.67 |
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Stocks & Bonds |
16,588.00 |
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Total Other Assets |
135,022.96 |
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Total Assets |
144,978.96 |
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Liabilities |
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Liabilities |
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Bank Line of Credit |
35,000.00 |
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Mortgages Due |
45,554.00 |
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Total Liabilities |
80,554.00 |
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Equity |
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Owner's Equity |
64,424.96 |
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Total Equity |
64,424.96 |
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Total Liabilities and Equity |
144,978.96 |
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Courtesy of http://www.smallbusinessnotes.com/
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