ACCT 3110 CH 3

ACCT 3110 CH 3 - Accounting 3110: External Financial...

Info iconThis preview shows pages 1–9. Sign up to view the full content.

View Full Document Right Arrow Icon
Accounting 3110: External Financial Reporting I Chapter 3: The Balance Sheet and Financial Disclosures (skip appendix)
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Chapter Overview provides relevant information to financial statement users. helps the financial statement user predict future cash flows and assess liquidity and solvency. Balance sheet
Background image of page 2
Balance Sheet Limitations: The balance sheet does not portray the market value of the entity as a going concern nor its liquidation value. Resources such as employee skills and reputation are not recorded in the balance sheet. Usefulness: The balance sheet describes many of the resources a company has 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 solvency information relating to the riskiness of a company with regard to the amount of liabilities in its capital structure. Reports a company’s financial position on a particular date.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Balance Sheet A = L + SE Resources = Claims to resources Claims to resources = creditor claims + shareholder claims
Background image of page 4
Financial Statement Relationships Balance Sheet 12/31/10 Balance Sheet 12/31/11 During 2011 A = L + SE A = L + SE Revenue - Expenses Net Income Income Statement for the Year Statement of Changes in Stockholders’ Equity Beginning Balances Paid-in Capital Changes Retained Earnings Changes: + Net Income - Dividends Ending Balances Statement of Cash Flows Cash Provided (Used) by: Operating Activities Investing Activities Financing Activities + Beginning Cash Balance Ending Cash Balance
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
(In millions) January 30, 2009 February 1, 2008 Assets: Current assets: Cash and cash equivalents 8,352 $ 7,764 $ Short-term investments 740 208 Accounts receivables, net 4,731 5,961 Financing receivables, net 1,712 1,732 Inventories, net 867 1,180 Other current assets 3,749 3,035 Total current assets 20,151 19,880 Noncurrent assets Property, plant, and equipment, net 2,277 2,668 Investments 454 1,560 Long-term financing receivables, ne 500 407 Goodwill 1,737 1,648 Purchased intangible assets, net 724 780 Other non-current assets 657 618 Total noncurrent assets 6,349 7,681 Total Assets 26,500 $ 27,561 $ Dell Inc. Balance Sheet Assets are probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events.
Background image of page 6
Balance Sheet Classifications Assets: Current assets Investments (long-term) PPE Intangible assets Other assets Liabilities: Current liabilities Long-term liabilities Stockholder’s equity: Paid-in capital Retained earnings Classified balance sheet groups similar accounts together to arrive at significant subtotals and show important relationships.
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Cash Cash Equivalents Short-term Investments Receivables Inventories Prepaid Expenses Current Assets Will be converted
Background image of page 8
Image of page 9
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 06/05/2011 for the course ACCT 3110 taught by Professor Snow during the Spring '11 term at Toledo.

Page1 / 32

ACCT 3110 CH 3 - Accounting 3110: External Financial...

This preview shows document pages 1 - 9. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online