FIN 300 Fin Statements Taxes Ch3 - FIN 300 Fundamentals of Finance Financial Statements Taxes Chapter 3 FIN 300 Fin Statements Taxes 1 The Balance Sheet

FIN 300 Fin Statements Taxes Ch3 - FIN 300 Fundamentals of...

  • Test Prep
  • You-Snooze-You-Looze
  • 31
  • 100% (2) 2 out of 2 people found this document helpful

This preview shows page 1 - 10 out of 31 pages.

FIN 300 Fundamentals of Finance Financial Statements & Taxes Chapter 3 1 FIN 300 - Fin Statements & Taxes
Background image
The Balance Sheet Firm Assets & funding at a point in time Left side of a balance shows assets a firm owns and uses to generate revenue Right side of the balance sheet shows sources of the funds used to acquire assets )1.3('EquityrsStockholdeTotalsLiabilitieTotalAssetsTotal+=
Background image
Diaz Manufacturing Balance Sheets as of December 31
Background image
The Balance Sheet Item order Assets listed in order of liquidity Liabilities listed in order in which they are due to be paid Stockholders’ equity listed last Common stockholders are entitled to assets remaining after all other providers of funds are paid.
Background image
The Balance Sheet Current Assets Assets likely to be converted to cash within a year (or one operating cycle) marketable securities accounts receivable inventory
Background image
The Balance Sheet Current Liabilities Liabilities scheduled to be paid within a year (or one operating cycle) accounts payable accrued wages debt with less than a year’s maturity taxes
Background image
The Balance Sheet Net Working Capital (3.2)sLiabilitieCurrentTotal-AssetsCurrentTotalCapitalWorkingNet=
Background image
The Balance Sheet Net working capital example Diaz Manufacturing Total current assets = $1,039.8 million Total current liabilities = $377.8 million Net working capital = Total current assets - Total current liabilities = $1,039.8 million - $377.8 million = $662.0 million
Background image
The Balance Sheet Long-Term Assets Real Assets land buildings equipment Intangible Assets goodwill patents copyrights
Background image
Image of page 10

You've reached the end of your free preview.

Want to read all 31 pages?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes