Page 51 - Finance for Non-Financial Managers
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Finance for Non-Financial Managers
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Current Assets
Cash and Equivalents ASSETS $155,000
Accounts Receivable 940,000
Less Allowances for Bad Debts (64,000)
876,000
Inventory
Raw Materials 311,000
Work in Process 65,000
Finished Goods 215,000
591,000
Prepaid Expenses 45,000
Total Current Assets $1,667,000
Fixed Assets
Land and Buildings 1,250,000
Machinery and Equipment 750,000
Computers and Office Equipment 250,000
2,250,000
Less Accumulated Depreciation (972,000)
Total Fixed Assets $1,278,000
Other Assets
Deposits (held by others) 25,000
Long-Term Investments 276,000
Total Other Assets $301,000
Total Assets $3,246,000
Figure 3-1. The Wonder Widget Company balance sheet (Assets)
Let’s call first for a statement of financial condition, more
commonly called a balance sheet.
You notice that the two sides of the balance sheet—assets
on the left and liabilities and stockholders’ equity on the right—
are in balance. That’s nice. But what’s actually shown on this
magical balancing piece of paper?
