BalaSheet03

BalaSheet03 - 3-1Financial Statements:1 The Balance...

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Unformatted text preview: 3-1Financial Statements:1. The Balance SheetLimitations:The balance sheet does notportray the market value of the entity as a going concern nor its liquidation value.Resources such as employee skills and reputation are not recordedin the balance sheet.Usefulness:The balance sheet describes many of the resources a company has available for generating future cash flows.It provides liquidity information useful in assessing a company’s ability to pay its current obligations.It provides long-term solvencyinformation relating to the riskiness of a company with regard to the amount of liabilities in its capital structure.The purpose of the balance sheetis to report a company’s financial position on a particular date.3-2Resources (Assets)Claims against resources (Liabilities)Remaining claims accruing to owners (Owners’ Equity)Balance Sheet3-3(In millions)20042003Assets:Current assets:Cash and cash equivalents1,046$ 538$ Receivables, less allowances3,0272,627Spare parts, supplies, and fuel249228Deferred income taxes489416Prepaid expenses and other159132Total current assets4,970$ 3,941$ Property and equipment, at cost:Aircraft and related equipment7,001$ 6,624$ Package handling & ground supportequipment and vehicles5,2965,013Computer & electronic equipment3,5373,180Other4,4774,20020,31119,017Less accumulated depreciation 11,27410,317Net property and equipment9,0378,700Other long-term assets:Goodwill2,8021,063Prepaid pension cost1,1271,269Intangible and other assets1,198412Total other long-term assets5,1272,744Total Assets19,134$ 15,385$ FedEx CorporationBalance Sheet31-MayAssets are probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events. 3-4CashCashCash EquivalentsCash EquivalentsShort-term InvestmentsShort-term InvestmentsReceivablesReceivablesInventoriesInventoriesPrepaymentsPrepaymentsCurrent AssetsWill be converted Will be converted to cash or to cash or consumed within consumed within one year or the one year or the operating cycle, operating cycle, whichever is whichever is longer.longer.Current Current AssetsAssetsCash equivalentsinclude certain negotiable items such as commercial paper, money market funds, and U.S. treasury bills.3-5Current AssetsWill be converted Will be converted to cash or to cash or consumed within consumed within one year or the one year or the operating cycle, operating cycle, whichever is whichever is longer.longer.Cash that is restricted for a special purpose and not available for current operations should notbe classified as a current asset....
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BalaSheet03 - 3-1Financial Statements:1 The Balance...

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