Classified Balance Sheet

• Snapshot of a company's financial status is presented in a classified balance sheet at a specific time.
• The classified balance sheet enhances user understanding and groups similar assets and liabilities based on economic characteristics.

Standard Classifications

• Assets include current assets, long-term investments, property, plant, and equipment, and intangible assets
• Liabilities and Stockholders' Equity include current liabilities, long-term liabilities, and stockholders' equity

Current Assets

• Cash, debt investments, accounts receivable, notes receivable, inventory, supplies, and prepaid insurance comprise current assets
• Total current assets for Franklin Corporation on October 31, 2025 was $22,100

Long-term investments

• Stock investments of $5,200 and an investment in real estate of $2,000 comprise long-term investments
• Franklin Corporation's total long-term investments on October 31, 2025 was $7,200

Property, Plant, and Equipment

• Land valued at $10,000, equipment originally costing $24,000 but depreciated by $5,000 is property, plant, and equipment
• Franklin Corporation's property, plant, and equipment was $29,000 on October 31, 2025

Intangible Assets

• Patents valued at $3,100 are the Intangible assets of Franklin Corporation
• Total assets for Franklin Corporation on October 31, 2025, amounted to $61,400

Current assets

• Assets expected to be converted to cash or used up within one year or the operating cycle, whichever is longer
• Operating cycle is the average time to purchase inventory, sell on account, and collect cash from customers, often one year
• Current assets are listed in order of liquidity, the order in which they are expected to turn into cash
• Examples are cash, investments in short-term securities, receivables, inventories, and prepaid expenses like insurance and supplies

Southwest Airlines Presentation

• Cash and equivalents totaled $1,680 million
• Short-term investments were valued at $1,625 million
• Accounts receivable amounted to $546 million
• Inventories totaled $337 million
• Prepaid expenses and other current assets were $310 million
• The total current assets amounted to $4,498 million

Long-Term Investments

• Investments can be converted to cash, but not within one year and are investments in stocks and bonds of other corporations.
• Long-term assets, such as land or buildings not currently used in operations and long-term notes receivable.

Alphabet inc Presentation

• Non-marketable investments were valued at $5,183 million

Property, Plant, and Equipment

• Assets with relatively long useful lives currently used in operations, sometimes called fixed or plant assets
• Includes land, buildings, equipment, delivery vehicles, and furniture
• Value is reported on the balance sheet at book value

Depreciation

• Systematic allocation of cost to expense over several years and reduces the value of assets
• Is the culmination of all depreciation that the company has expensed thus far in the asset’s life

Coopers tire and rubber company presentation

• Land and land improvements are valued at $47,767
• Buildings are valued at $282,960
• Machinery and equipment are valued at $1,742,449
• Molds, cores and rings are valued at $224,662
• There is accumulated depreciation of $1,433,661
• Totaled $864,227

Intangible assets

• Assets lacking physical substance that grant exclusive usage rights for a specified duration
• Includes goodwill, patents, copyrights, and trademarks, and sometimes reported under "Other assets"

Walt Disney Company presentation

• Franchise intangibles and copyrights are valued at $5,829 million
• Other amortizable assets are valued at $893 million
• Accumulated amortization has a cost of $1,635 million
• Net amortizable assets are valued at $5,087 million
• Licenses are valued at $624 million
• Trademarks are valued at $1,218 million
• Other indefinite lived intangible assets have a cost of $20 million
• Goodwill is valued at $27,810 million
• Intangible assets cost $34,759

Liabilities and Stockholders' Equity

• Notes payable at $11,000, accounts payable at $2,100, unearned sales revenue at $900, and salaries & wages payable at $1,600.
• Franklin company in 2022, interest payable at $450, with total current liabilities of $16,050
• Long-term liabilities include a mortgage payable for $10,000 and notes payable for $1,300, for a total of $11,300.
• Total liabilities are $27,350
• Stockholders' equity consists of common stock ($14,000) and retained earnings ($20,050), totaling $34,050.
• Total liabilities and stockholders' equity amount to $61,400

Current Liabilities

• Obligations due within the next year or operating cycle
• Common ones are accounts payable, notes payable, salaries and wages, interest, and income taxes Current maturities of long-term obligations are also current liabilities with payments due within a year of the balance sheet date

Alphabet, Inc. Presentation

• Accounts Payable: $1,931 million
• Short-term Debt: $3,225 million
• Accrued compensation and benefits: $3,539 million
• Accrued expenses and other current liabilities: $10,313 million
• Income taxes payable, net: $302 million
• Total Current Liabilities: $19,310 million

Long-Term Liabilities

• Debts expected to be paid after one year, often reported as a single amount with details in notes
• Include long-term notes, bonds, mortgages, lease, and pension liabilities

Nike, Inc. Presentation

• Bonds payable are valued at $5,474 million.
• Deferred income taxes and other liabilities are valued at $1,907 million
• Long-term liabilities totaled $7,381 million Stockholders’ Equity

Stockholder Equity

• The stock and retained earnings are investments of assets by the stockholders and the income retained for use in the business

Ratios

• Express the mathematical relationship among selected items of financial statement data

Ratio Comparison

• Intracompany compares two years for the same company
• Industry average for average ratios in particular industries
• Intercompany compares with a competitor in the same industry

Using Income Statement

• Shows the success of a company by finding a profit from product sales and service.
• This reports the annual revenues earned and costs from the expenses, showing profitability ratios.

Best Buy Co presentation in 2020

• Best Buy had a Net sales and other revenues of $43,686 vs $42,940 in 2019
• They had expenses in cost of goods sold for $33,590 vs $32,918 in 2019
• Selling, general, and admin expenses and others had a cost of $8,103 vs $8,134 in 2019
• Income tax expenses had a cost of $452 vs $424 in 2019
• Total expenses were $42,145 vs $41,476 in 2019
• Net Income $1,541 vs $1,464

Earning Per Share

• A Key profitability ratio used in earnings available to stockholders which measure net income
• It also omits dividends for the prefer stockholders and is useful in perspective for stack holders to determine invest return.

Computing earnings

• Share data for Best Buy in 2020 and 2019
• Net income was $1,541
• Preferred Dividends -0.
• Shares outstanding at the beginning of the year were 266
• Shares Outstanding at year end 256

Lquidity

• Indicates when obligations ability to pay are expected next year from cycle.
• This relationship between two current assets as key measures.
• Capital to the current ration

Capital

• This is when Current Assets exceed Current Liabilities showing more income could allow to pay for Liabilities.

Current Ratios

• Used to measure the short term ability to pay for cash which meets liquidity and unexpected needs for cash.
• Indicator from dependence of capital is what it’s compared to.

Ratio data

• Best Buy on Feburary 1, 2020 was $8,857 million, but lowered later on Feburary 2, 2019 for $8,870 million
• Liabilities for the year 2020 for was $8,060 million vs $7,513 million in 2019 to which it was $797 better

Balance sheet

• All assets are financed to 78 best buy
• All decreased solvency showing 74 compared 78 better

Sovency

• Measurement to show time management and is ability to pay internment due repayments as at maturity
• A key is debt a ratio for asset

Asset Ratio

• A solvent measure for what you can do.
• The precent financing shows which can be provided from creditors and stockholders
• High implies that unable for debts to come but can support to fluctuate income.