Balance Sheet Flashcards
Assets section
Cash and cash equivalents
Accounts Receivable
Inventory
=Current Assets
Gross investment in PPE
Less: accumulated depreciation
=Net Fixed Assets
Liabilities section
Accounts payable
Short term debt-notes payable and long-term debt that has been expensed but not paid for
Accruals-payments that have been expensed but not paid for
=Current Liabilities
Long-Term Debt
Is gross investment in PPE a depreciated or undepreciated portion of fixed assets?
undepreciated
non-interest bearing liabilities consist of
accounts payable and accruals
Debt consists of
all liabilities
Short-term debt consists of
notes payable and long-term debt that has to be paid in the short-term
Accruals are
labor or government payments that has been expensed but not paid for
Shareholders’ Equity section
Preferred equity-debt that never matures
common equity-common stock at par, capital surplus, and retained earnings
Preferred equity
debt that never matures
common equity
common stock at par
capital surplus AKA paid-in or shareholders’ surplus
retained earnings-difference between par value and what company receives
Capital surplus is also known as
paid-in surplus or shareholders’ surplus
Retained earnings are the difference between
par value and what the company receives
Who gets paid first in the event of bankruptcy? Order.
- suppliers, 2. employees 3. preferred stock holders, 4. shareholders
___ and ____ finance 100% of a firm
Debt and equity
Investor-supplied operating capital can be calculated in three ways:
- short- and long-term debt + preferred equity + common equity
- total liabilities and equity - non-interest bearing current liabilities (a/p and accruals)
- net working capital (CA-CL) + net fixed assets
Non-interest bearing current liabilities are
accounts payable and accruals
Net working capital equation
Current assets - non-interest bearing current liabilities
Net worth of a company is also called _____
equity
Net worth of a company, or equity, is calculated by
Assets - Liabilities
Balance sheet consists of
Assets
Liabilities/Shareholders’ Equity
