Understanding financial statements ppt mba finance 1. For example if the company has been sued for 10000 and there is a 70 probability that the company will lose the case and pay the damage amount it should be recorded in the Balance Sheet as a liability. This is the amount that needs to be paid by the company and therefore should include a number of different things. Accounting Equation Assets Liabilities Owners Equity Sources of Funding Creditors claims against resources Owners claims against resources Resources Resources to use to generate revenues Assets Cash 40 Accounts receivable 100 Land 200 Total assets 340 Liabilities Accounts payable 50 Notes payable 150 200 Owners Equity Capital stock 100 Retained.

This slides shows the ABC logistic companys forecasted balance sheet details such as current assets non current assets total asset etc. Current expected to be settled within one year. The balance sheet shows the assets and liabilities of a business at a specific point in time usually the end of the financial period.

These statements include the income statement balance sheet statement of cash flows and a statement of changes in equity. Examples of Actual Financial Statements Hasbro Annual Report 1 Cover Page 2 Income Statement 3 Balance Sheet Assets Liabilities 4 Cash Flows 5 Notes 6 Notes 7 Notes Cover Page Income Statement Balance Sheet Assets Liabilities Cash Flows Notes Notes Notes Ratios Quick evaluations of the economic health of a company from balance. The liabilities side of a balance sheet can consist of other existing liabilities as part of short-term debt subcategories.

Example 2 ABC Plc statement of financial position as 30th June 2013 000 Non-current Asses NCA Amount PPE A Accumulated depreciation on PPE B 2300 Net Furniture 80000 Net Motor vehicles 150000 Total NCA 450000 Current assets CA Stock 30000 Cash 5000 Debtors C Total CA D TOTAL ASSESTS E EQUITY 180000 Long-term liabilities LTL. Liabilities are debt obligations that the company owes other companies individuals or institutions. Current liabilities are those liabilities that are due within a year whereas non-current liabilities are longer-time liabilities that are due after a year. PPE is impacted by Capex Property Plant and Equipment also known as PPE capture the companys tangible fixed assets.

It is different from an incomeprofit loss statement and a cash flow statement because it reports values at a single point in time not over a time period. Examples are commercial loans personal loans or mortgages There are 2 types of liabilities. DEFERRED TAX LIABILITY D.

Introduction Liabilities in financial accounting are the financial obligations which a company has to pay. Non-current payables it is also a residual definition that provides that all liabilities not classified as current are classified as non-current. Classified as current or non-current depending on the duration over which the entity intends to settle the liability.

An alternate way of defining cashflows. Register Credits and Debits for your books. A balance sheet is one of the three most common financial statements required to be presented to executives Boards and investors. Other financial liabilities that meet the definition of a non-current liability.

US Corporation Balance Sheet Information US Corporation Income Statement Information Cashflow to Assets. The final feature of the balance sheet is total equity which is the amount of the businesss capital belonging to shareholders. It consists of assets liabilities and equity.

Balance sheet Balance Sheet A balance sheet is one of the financial statements of a company that presents the shareholders equity liabilities and assets of the company at a specific point in time. NON-CURRENT PORTION OF LONG-TERM DEBT B. FINANCE LEASE LIABILITY C.

Logistic Company Forecasted Balance Sheet Statement Balance Sheet Microsoft PDF. One is current liabilities and the other is non-current liabilities. Examples are short-term borrowings cash and trade payables tax payables etc. The liabilities are classified into two types.

Examples are long term borrowings and bonds. LONG-TERM OBLIGATIONS TO COMPANY OFFICERS E. Why Accounting Informational requirement of a number of stakeholders in the business Internal Stakeholder Owners Management Employees External Stakeholders Government Tax department Investors BanksLenders SuppliersCreditors NGOs Industry.

Deliver and pitch your topic in the best possible manner with this logistic company forecasted balance sheet statement balance sheet microsoft pdf. Financial statement analysis is a method or process involving specific techniques. Items in balance sheet Description Examples Non current assets These are long term assets used.

An item of short-term debt that needs to be repaid within 12 months of incurring it will fall under the term current liabilities. Financial statement analysis is the process of reviewing and analyzing a companys financial statements to make better economic decisions. Non-current expected to be settled over a long term. Plant Property and Equipment PPE PPE Property Plant and Equipment PPE Property Plant and Equipment is one of the core non-current assets found on the balance sheet.

The 3 financial statements INCOME STATEMENT Operating Revenues Operating Expenses NonOperating RevenuesExpenses Changes in Net Assets CASH FLOW STATEMENT Cash Flow from Operations Cash Flow from Financing Cash Flow from Investments BALANCE SHEET Current Assets Longterm Assets Current Liabilities Longterm Liabilities.