1 / 13

Understanding a Financial Statement

Understanding a Financial Statement. Horticulture 2 Essential Standard 2.02. A . T o t a l a s s e ts = c u rr e n t a ss et s + n on - c u rr e n t a ss e ts.

rafiki
Télécharger la présentation

Understanding a Financial Statement

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Understanding a Financial Statement Horticulture 2 Essential Standard 2.02

  2. A.Total assets= currentassets+ non-currentassets. 1. Current assets- items thatcanquicklybeconvertedtocashorthatwill be soldwithin12months. Examples- cashonhand,checkingandsavings accounts, stocks,bondsandcashinvalueoflifeinsurancemoneyothersoweyou, currentnon-depreciableinventory. 2. Non-currentassets- itemsthathaveauseful lifeofmorethanoneyear andareusedinthebusiness. Examples- non-current,non-depreciableinventory,land.

  3. B.Total liabilities= currentliabilities(debts) + non-currentliabilities(debts). 1. Currentliabilities- accountsandnotespayable,thisyear’spartof non-currentliabilities. Non-currentliabilities- mortgages andotherdebtsnot due this year.

  4. C.Networthor owner’sequity= total assetsminustotal liabilities.

  5. D.Debt-to-EquityRatio- ameasure ofacompanyor individualsnetworthcompared totheliabilities. • Providesanindicator of thedebtandequityacompanyis using tofinanceassets. • FormulausedtocalculateDebt-to-EquityRatiois • Debt-to-EquityRatio = total liabilities/networth.

  6. E.Value- monetaryworth.

  7. F.Inventory- anitemizedlistofthings ownedbyabusinesswiththebeginningvalueanddepreciatedvalue. Non-depreciable- itemsthatwill beusedupor sold withinayear. Example:feed,supplies, etc. 2. Depreciable- itemsthathaveauseful lifeofmorethanoneyear andlose valuebecause ofage,wear or becomingout-of-datebecauseof technologyadvancements. 3. LandisNOTdepreciableproperty.

  8. 2.02.01RECORDSWORKSHEET Instructions: Statewhether each itemisacurrent liability,non-current liability, current asset,ornon-current asset.Givethevalueof that item and then calculate thetotalvalue.Onceyou haveallthevalues,calculatetotalassets,total liabilities,and networth.

  9. Balance Sheet

  10. Let’s Check Our Work!!!

  11. Balance Sheet

More Related