Page 52 - Finance for Non-Financial Managers
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The Balance Sheet
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Current Liabilities
Accounts Payable LIABILITIES $475,000
Accrued Payroll 57,000
Other Accrued Liabilities 31,000
Income Taxes Payable 54,000
Notes Payable to Banks, Short-Term 150,000
Current Portion of Long-Term Debt 52,000
Total Current Liabilities 819,000
Long-Term Liabilities
Lease (Purchase) Contracts 125,000
Long-Term Debt (other than leases) 300,000
Loans from Stockholders 75,000
500,000
Less Current Portion of Long-Term Debt (52,000)
Total Long-Term Liabilities 448,000
Total Liabilities 1,267,000
Stockholders’ Equity
Capital Stock 50,000
Contributed Capital 1,750,000
Retained Earnings 179,000
Total Stockholders’ Equity 1,979,000
Total Liablities $3,246,000
Figure 3-1. The Wonder Widget Company balance sheet (Liabilities)
Let’s look at each line item on our balance sheet and see if
we can understand what they are and what they tell us about
The Wonder Widget Company. (Our balance sheet has some
italicized comments in parentheses, such as “(held by others)”
next to the Deposits item under the Other Assets caption. These
comments are to help you understand the line item; they would
not normally appear on the page.)
