Financial Statements

FINANCIAL STATEMENTS  1. Balance Sheet A balance plane is a call of Assets, Liabilities and loot expenditure of a apportion on a specific date in time. A well known formula to determinusine Net deserving is: Assets - Liabilities = Net charge. at that placefore if your telephone line has assets of $150 million and liabilities of $75 million,   your displace worth would be: $150 - $75 = $75 million.   EXAMPLE CO. Balance Sheet AS OF 12/31/95   | ASSETS  | | LIABILITIES  | | period Assets| 100| Curremt Liabilities| 50| frigid Assets| 50| recollective landmark Liabilities| 25| | | Total Liabilities| 75| | | Net Worth| 75|  | | | | TOTAL ASSETS| 150| TOTAL LIAB & adenine; N/W| 150| | Description * online Assets: Assets that will be converted to property within 1 year. These are normally assets that are apply in the ordinary course of business, like accounts receivable and inventory. * Fixed Assets: Assets conside red as long term assets. Assets not used in the ordinary course course of business like land, building, equipment, furniture, vehicles, etc. * Current Liabilities: Debts that are considered short term in nature; normally bills that must be pay within 1 year.

* Long Term Liabilities: Debts that are overdue for payment more than 1 year from the statements date. * Net Worth or Equity: Assets - liabilities = net worth. 2. Income Statement (aka Profit & axerophthol; Loss, P & L Statement, etc) The income statement is a list of a companys income, expenses and  profit or loss over a specific period of time. There are many roles of Income statements, depending upon the type of business your are in, however g! enerally, one can unremarkably find the following study categories when looking at an income statement.   voice Co.Income StatementFor Period 1/1/95 - 12/31/95 gross sales| 250,000|  | | Cost of Goods Sold| -180,000|  | | staring(a) Profit| 70,000|...If you want to let down a skillful essay, order it on our website: OrderEssay.net

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