The Balance Sheet Is The Descriptive Interpretation Of The Assets

1826 Words Mar 16th, 2016 8 Pages
The balance sheet is the descriptive interpretation of the assets of what Andrews Company owns (assets), what it owes to the creditors (liabilities) and the contributions from the investors and (equity). Thus, Assets = Liabilities + Equity
Assets are made up of two parts, current and fixed. The assets that can be converted easily into cash in less than a year are current such as cash at hand, inventory, and accounts receivable while fix assets are those that are not easily being convertible such as the value of property, plant, and equipment in the simulation Team member guide, 2016). Liabilities are the accounts payable, current debt which comprises of one-year bank notes and long term debt which comprises of 10-year bond issues. Equity is made up of common stock and retained earnings. In the table below, Andrews had $198,999,000 as total assets for 2024 less by 1.8 % of 2023 and a current asset of $29,717,000 in 2024 against $50,480,000 in 2023 which represented about 10.9 %. The drop in total current assets was partly because of $0 initial cash at hand which in 2023 $20,343,000 was. The cash in hand in the previous year would pay parts of its debts unlike the recent year. Baldwin had even more cash than Andrews in each of the accounting year, placing it stronger in current assets than Andrews. For account receivable, Andrews had $ 22,117 which is 9.8 % higher than Baldwin with $19,939 meaning Andrews increased its current assets more than Baldwin in 2024. The…
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