Page 62 - Bruce Ellig - The Complete Guide to Executive Compensation (2007)

48 The Complete Guide to Executive Compensation

Assets $330,997.9 Liabilities $193,920.5
Shareholder equity 137,077.4
Total $330,997.9 Total $330,997.9
Table 2-5. Balance sheet (in thousands)

Assets are sometimes described as current (short term) and noncurrent (long term). Short-
term assets include cash and other items that could be converted to cash within a year. Long-
term assets include items with values and uses extending beyond a year. The former includes
working capital, or current assets that are available to meet current obligations, namely, cur-
rent liabilities ($23,683,100 in Table 2-7). In the example Table 2-6, current (short-term) assets
of $79,301,500 include cash and cash equivalents ($18,738,200), short-term investments
($14,833,800), short-term loans ($4,559,400), accounts receivable ($19,463,200 less doubtful
accounts of $784,600, or $18,678,600), inventories [($14,095,300) consisting of finished
goods ($6,576,400) plus work in process ($4,981,700) plus raw material and supplies
($2,537,200)], and prepaid expenses ($8,396,200). In Table 2-6, current assets total
$79,301,500. Thus, working capital is $55,818,400 ($79,301,500 less $23,683,100). Also

Current assets
Cash and cash equivalents $18,738.2
Short-term investments 14,833.8
Short-term loan receivables 4,559.4
Accounts receivable 18,678.6
• Gross $19,463.2
• Doubtful accounts 784.6
Inventories 14,095.3
• Finished goods $6,576.4
• Work in process 4,981.7
• Raw materials and supplies 2,537.2
Prepaid expenses and other assets 8,396.2

Total current assets $79,301.5
Noncurrent assets
Long-term investments $28,347.7
Long-term loan receivables 4,679.3
Land 47,065.4
Buildings and equipment (net of depreciation) 76,980.5
Goodwill (net of amortization) 89,836.8
Prepaid expenses and other assets 4,786.7
Total noncurrent assets $251,696.4

Total assets $330,997.9
Table 2-6. Balance sheet—assets (in thousands)