436 3 433 165 268 268 pearson chapter 3 understanding

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Unformatted text preview: 07 3,207 $ 869 $ 433 433 $ 436 3 $ 433 165 $ 268 268 Pearson Chapter 3 Understanding Financial Statements and Cash Flows Balance Sheet • Provides a firm’s financial position at a specific point Provides in time in • Assets are resources owned by the firm • Liabilities and owner’s equity indicate how those Liabilities resources are financed resources Total Assets = Liabilities (debt) + Shareholder’s Equity Liabilities Or…A= L+OE 3-9 Foundations of Pearson Chapter 3 Understanding Financial Statements and Cash Flows Balance Sheet Terminology • Current assets or gross working capital comprise Current assets that are relatively liquid, or expected to be converted into cash within 12 months. converted • Current assets typically include: – Cash – Accounts Receivable Accounts payments due from customers who buy on credit payments – Inventory raw materials, work in process, and finished goods held for raw eventual sale eventual – Other expenses Prepaid expenses are those items paid for in advance 3 - 10 Foundations of Pearson Chapter 3 Understanding Financial Statements and Cash Flows Balance Sheet Terminology Balance...
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