Balance Sheets December 31 Increase or (Decrease) 2020 2019 Amount Percentage Assets Current assets $124,600 $100,000 $enter a dollar amount enter your answer in percentages rounded to 1 decimal place % Plant assets (net) 394,800 329,000 enter a dollar amount enter your answer in percentages rounded to 1 decimal place % Total assets $519,400 $429,000 $enter a subtotal of the two previous amounts enter your answer in percentages rounded to 1 decimal place % Liabilities Current liabilities $85,994 $73,000 $enter a dollar amount enter your answer in percentages rounded to 1 decimal place % Long-term liabilities 128,828 86,000 enter a dollar amount enter your answer in percentages rounded to 1 decimal place % Total liabilities 214,822 159,000 enter a subtotal of the two previous amounts enter your answer in percentages rounded to 1 decimal place % Stockholders' Equity Common stock, $1 par 166,026 118,000 enter a dollar amount enter your answer in percentages rounded to 1 decimal place % Retained earnings 138,552 152,000 enter a dollar amount enter your answer in percentages rounded to 1 decimal place % Total stockholders' equity 304,578 270,000 enter a subtotal of the two previous amounts enter your answer in percentages rounded to 1 decimal place % Total liabilities and stockholders' equity $519,400 $429,000 $enter a total amount in dollars for liabilities and stockholders' equity enter your answer in percentages rounded to 1 decimal place %
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
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GLITTER INC.
Condensed December 31 |
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Increase or (Decrease)
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2020
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2019
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Amount
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Percentage
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Assets
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Current assets
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$124,600
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$100,000
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$enter a dollar amount
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enter your answer in percentages rounded to 1 decimal place %
|
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|
Plant assets (net)
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394,800 | 329,000 | enter a dollar amount |
enter your answer in percentages rounded to 1 decimal place %
|
||||||
|
Total assets
|
$519,400 | $429,000 |
$enter a subtotal of the two previous amounts
|
enter your answer in percentages rounded to 1 decimal place %
|
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|
Liabilities
|
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Current liabilities
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$85,994
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$73,000
|
$enter a dollar amount
|
enter your answer in percentages rounded to 1 decimal place %
|
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|
Long-term liabilities
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128,828 | 86,000 | enter a dollar amount |
enter your answer in percentages rounded to 1 decimal place %
|
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Total liabilities
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214,822 | 159,000 | enter a subtotal of the two previous amounts |
enter your answer in percentages rounded to 1 decimal place %
|
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|
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Common stock, $1 par
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166,026
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118,000
|
enter a dollar amount
|
enter your answer in percentages rounded to 1 decimal place %
|
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|
|
138,552 | 152,000 | enter a dollar amount |
enter your answer in percentages rounded to 1 decimal place %
|
||||||
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Total stockholders' equity
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304,578 | 270,000 | enter a subtotal of the two previous amounts |
enter your answer in percentages rounded to 1 decimal place %
|
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Total liabilities and stockholders' equity
|
$519,400 | $429,000 | $enter a total amount in dollars for liabilities and stockholders' equity |
enter your answer in percentages rounded to 1 decimal place %
|
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