The Balance Sheet

This gives us a snapshot of the overall financial health of the company. What does this mean to us? It tells us the risk of the company going bankrupt – something which sends the company’s stock to near-zero.

The balance sheet is split into two main groups;

• Assets – things which the company itself owns.
• Liabilities – things which the company owes to others.

Each of these groups are then split into two sub-groups;

• Current – less than a year.
• Non-Current – more than a year.

Putting these together, we get;

• Current Assets – things the company have owned for less than 1 year.
• Current Liabilities – things the company owes others that are due in less than 1 year.
• Non–Current Assets – things the company have owned for more than 1 year.
• Non–Current Liabilities – things the company owes others that are due in more than 1 year.

Use the balance sheet below to go through and learn each item – just click on the link.

	June 30, 2019	June 30, 2018
ASSETS
Current Assets:
Cash and Cash Equivalents
Marketable Securities
Accounts Receivable, net of allowance of $x and $y as of June 30, 2019, and June 30, 2018, respectively
Prepaid Expenses
Inventories
Other Current Assets
Total Current Assets
Non-Current Assets:
Property, plant and equipment, net
Operating Lease Right-of-Use Assets
Goodwill
Intangible Assets
Deferred Taxes
Other Assets
Long-Term Investments
Total Non-Current Assets
Total Assets
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts Payable
Accrued Expenses
Current Portion of Long-Term Debt
Current Operating Lease Liabilities
Other Current Liabilities
Long-Term Portion of Operating Lease Liabilities
Long-Term Debt
Deferred Taxes
Other Liabilities
Total Liabilities
Stockholder’s Equity:
Preferred Stock – x shares authorised
Common Stock – $1 par value; 100,000 shares authorised; 50,000 shares issued, respectively
Additional Paid-In Capital
Accumulated Other Comprehensive Loss
Retained Earnings
Common Stock held in Treasury, at cost – 1,000 shares
Total Stockholders’ Equity
Total Liabilities and Stockholder’s Equity