Balance sheets can be used with other important financial statements to conduct fundamental analysis or calculating financial ratios. Balance sheet refers to a financial statement that reports a company's assets, liabilities, and shareholder equity at a specific point in time. Balance sheets provide the basis for computing rates of return for investors and evaluating a company's capital structure. In short, the balance sheet is a financial statement that provides a snapshot of what a company owns and owes, as well as the amount invested by shareholders.Balance sheets can be used with other important financial statements to conduct fundamental analysis or calculating financial ratios.
Souza Mobil Corporation
Assets
Current assets
Cash and cash equivalents 5,669
Notes and accounts receivable-net 27,880
Inventories
Crude oil, products and merchandise 14,617
Materials and supplies 4,144
Other current assets 1,665
Total current assets 53,975
Investments, advances and long-term receivables 40,427
Property, plant and equipment-net 249,153
Other assets, including intangibles-net 11,073
Total assets 354,628
Liabilities
Current liabilities
Notes and loans payable 19,413
Accounts payable and accrued liabilities 41,714
Income taxes payable 4,161
Total current liabilities 65,288
Long term debt 20,624
Postretirement benefits reserves 21,448
Deferred income tax liabilities. 27,084
Long-term obligations to equity companies 4,625
Other long-term obligations 18,728
Total liabilities 157,797
Commitments and contingencies
Equity
Common stock without pay value
(9,000 million shares authorized, 8,019 million shares issued ) 15,254
Earnings reinvested 419,155
Accumulated other comprehensive income (18,370)
Common stock held treasury
(3,785 million shares at September and
3,780 million shares at December ) (225,674)
Souza'smobil share equity 190,365
Noncontrolling interests 6,466
Total equity 196,831
Total liabilities and equity 354,628
A balance sheet should be analyzed by the assets, liabilities and shareholders equity
This means that assets, or the means used to operate the company, are balanced by a company's financial obligations, along with the equity investment brought into the company and its retained earnings.
Assets are what a company uses to operate its business, while its liabilities and equity are two sources that support these assets. Owners' equity, referred to as shareholder's equity, in a publicly traded company, is the amount of money initially invested into the company plus any retained earnings and it represents a source of funding for the business.
It gives you all the company's financial situation using these three methods mentioned above.
Balance sheet: assets, liabilities
Income statement: income, expenses
Cash Flow: Cash Inflows, cash outflows
Comments