The analysis and application of the balance sheet

A balance sheet is a statement of the assets and liabilities of a business going into depth of what the balance of income period.

The balance sheet is one of four types of financial statements that are analyzed to determine the well being of the firm. The balance sheet is also known as the Statement of Financial Position. The balance sheet provides the detailed information needed to determine the financial condition of the firm on a specific date, which is usually December 31. The balance sheet depicts what the firm owns (assets), owes (liabilities), and how much capital (shareholders’ equity) it has. “The name, balance sheet, is derived from the fact that these accounts must always be in balance. Assets

Several companies use the balance sheet to make sound business decisions. The balance sheet is like a quantitative summary of a company’s financial condition at a specific point in time, including the assets, liabilities,

Another important aspect of business that owners must understand is what assets and liabilities are, and also the stockholders equity. These are all shown in detail on the balance sheet which is discussed in the next paragraph. An asset in its simplest form is a resource owned by a business. This could be anything from cash and equipment, to patents and trademarks. Liabilities are debts or other payments that the company owes. These can range from notes and bonds payable to deferred taxes and accrued liabilities from the past. The last thing an owner must understand is the stockholders equity. This is the claim that the owner has to the assets. These are all related and shown in detail on a balance sheet. As the name implies, the assets must equal the liabilities plus the stockholders equity. These three things are used to determine many things including assets to debt ratio which can help determine

Separately, the balance sheet reports a company’s financial position while the income statement reports a company’s fiscal year profits and losses. The balance sheet measures a company’s financial position by reporting its assets, liabilities, and owner’s (shareholder’s) equity. The income statement measures a company’s financial performance by reporting its revenues, expenses, and net income/loss. When combined, they serve two vital purposes: (1) expand the accounting equation and (2) enable analysis using ratios to determine industry position or potential material misstatements. The increase or decrease in owner’s (shareholder’s) equity on the balance sheet is a direct result of the net

The Balance Sheet is another type of financial statement used by a company to see a snapshot of the company's financial position at a particular point in time. It lists the value of the company's assets followed by its liabilities. A balance sheet can be summed up by a simple equation:

The statement of financial position and the balance sheet is statement that reviews the assets, liabilities, and equities that a business is holding at a particular moment in time. These elements: assets, liabilities, and equities; allows the reader of the financial statement to be able to identify what the company owns, owes, and has invested into the company.

The balance sheet shows the firm’s financial position with respect to assets and liabilities at a specific point in time. An example of a balance sheet is presented in Table….. The balance sheet provides three types of information: assets, liabilities, and owners’ equity. Assets are what the company owns, and they include current assets those that can be converted

A Balance Sheet is a snapshot of an organization’s assets, liabilities, and owners’ equity at any given time. It allows the stakeholder’s to see the company's financial condition, as well as, presenting what is owned and owed. Assets are the things that are owned, and are referred to as capital. Liabilities are the amounts owed to others. In order to get an accurate picture, one must look at the whole document, and make comparisons amongst different line items.

The balance sheet is also one of the annual accounts and main financial statements. It contains figures of business’ total assets, capital and liabilities at a particular time. The balance sheet is in two parts, one containing the details of

Financial statement users around the globe use financial statements to evaluate the performance of companies (Fundamentals of Financial Accounting, 2006). In order to locate a company’s reported assets, liabilities, expenses and revenues, statement users rely on four types of financial statements. The four financial statements include: Balance Sheet, Income Statement, Statement of Retained Earnings, and Statement of Cash Flows (Fundamentals of Financial Accounting, 2006, p. 6). Each of these reports provides different information to the financial statement user. The Balance Sheet reports at a point in time: a company’s assets (what it owns), liabilities (what it owes) and

The key components of the balance sheet reflect the financial position shown in the three permanent accounts: assets, liabilities, and owners’ equity. Assets are listed from most liquid to least liquid- liquidity meaning the closest or quickest form of cash. That being said, current assets are defined as cash, marketable securities, accounts receivable, inventory, and prepaid expenses. The opposite of assets, liabilities represent current and noncurrent obligations for which the company is committed. Current liabilities can include accounts payable, taxes payable, and salaries payable. Noncurrent liabilities represent commitments that extend longer than one year, such as bank loans, bonds and lease obligations. The final account on the balance sheet is owners’ equity. This represents the blood, sweat, and tears that the owner put into the company in an effort to realize a vision and see it come to fruition. The poetic version aside, owners’ equity also represents the

The financial statement mostly used by managers within an organization is the balance sheet. The balance sheet lays out all of the company’s assets and liabilities at a certain point in time (Chron, 2013). Management can determine the company’s available cash and if adjustments are needed to the business practices. The balance sheet simply shows the difference between the company’s assets and liabilities, which equals the net worth of the business. Managers must review the balance sheet to determine how the company can repay creditors, finance operations, and if purchases can be made at that time.

Balance sheet: prepared from the assets, liabilities, and equity accounts. The balance sheet prepared as of a specific date, records the categories and amounts of assets employed by the business and the offsetting liabilities incurred to lenders and owners. Also called the statement of financial condition or statement of financial position, it must always balance.

Balance sheets and income statements are a snapshot of a company’s stability and financial situation. Combined the statements show the income, expenses, and stockholder’s equity in the company. These statements are often analyzed by financial institutions when a company comes to them needing a loan. Stockholders and other investors also look at these statements to make sure their investment will return a profit for them. This paper will look at four different companies and their balance sheets and income statements. The companies are Eastman Chemical Company, Covenant Transportation