balance

Balance Sheets

A statement of a company's relative wealth or financial position at a given point in time.

Often business sheets are used with income statements to create business and financial ratios, including:

liquidity ratios
efficiency ratios
profitability ratios
solvency ratios

The balance sheet consists of three categories of items: assets,
liabilities, and stockholders' or owners' equity.

Assets - usually presented in order of liquidity

Current assets (cash and those that will be converted to cash within one year)

Cash	$X
Short-term Investments/Marketable Securities	$X
Accounts and Notes Receivable	$X
Inventories	$X
Prepaid Expenses	$X
Other Current Assets	$X

Fixed assets (those that will not be converted to cash within one year)

Land	$X
Buildings	$X
Machinery and Equipment	$X
Capitalized Leases	$X
(Less Accumulated Depreciation and Amortization)	$X
Deferred Charges	$X
Other Fixed Assets	$X

Liabilities - usually presented in order of their claim
on the company's assets (i.e., liabilities due within one year are
presented before liabilities due several years from now).

Current Liabilities

Accounts Payable	$X
Notes Payable	$X
Income Taxes Currently Payable	$X
Current Portion of Long-term Debt	$X
Other Current Liabilities	$X
Total Current Liabilities	$X

Long-Term Liabilities

Long-term Debt	$X
Capital Lease Obligations	$X
Deferred Income Taxes	$X
Other Long-term Liabilities	$X
Total Long-term Liabilities	$X

Equity - each class of ownership presented with all relevant information (for example, number of shares authorized, shares issued, shares outstanding, and par value). If retained earnings are restricted or appropriated, this also should be shown.

Stockholders' Equity

Preferred Stock	$20 par value (authorized 1,000 shares; issued and outstanding 500 shares)	$X
Common Stock	$15 par value (authorized 10,000 shares; issued and outstanding 5,000 shares)	$X
Additional Paid-in Capital, Common Stock		$X
Retained Earnings		$X

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