Delta Designs, Inc. Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 Assets Total Current Assets $32,250 $66,600 Property, Plant, and Equipment, Net 180,750 168,720 Other Assets 37,000 60,680 Total Assets $250,000 $296,000 Liabilities Total Current Liabilities $30,500 $45,880 Long-term Debt 80,750 204,536 Total Liabilities 111,250 250,416 Stockholders' Equity Total Stockholders' Equity 138,750 45,584 Total Liabilities and Stockholders' Equity $250,000 $296,000 Perform a vertical analysis of DeltaDelta Designs' balance sheet for each year. (Round the percent of total amounts to one decimal place, X.X%.) Delta Designs, Inc. Balance Sheet December 31, 2018 and 2017 2018 Percent of Total Assets Total Current Assets $32,250 % Property, Plant, and Equipment, Net 180,750 % Other Assets 37,000 % Total Assets $250,000 % Liabilities Total Current Liabilities $30,500 % Long-term Debt 80,750 % Total Liabilities 111,250 % Stockholders' Equity Total Stockholders' Equity 138,750 % Total Liabilities and Stockholders' Equity $250,000 %
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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Delta Designs, Inc.
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Comparative Balance Sheet
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December 31, 2018 and 2017
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2018
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2017
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Assets
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Total Current Assets
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$32,250
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$66,600
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Property, Plant, and Equipment, Net
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180,750
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168,720
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Other Assets
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37,000
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60,680
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Total Assets
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$250,000
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$296,000
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Liabilities
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Total Current Liabilities
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$30,500
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$45,880
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Long-term Debt
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80,750
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204,536
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Total Liabilities
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111,250
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250,416
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Total Stockholders' Equity
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138,750
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45,584
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Total Liabilities and Stockholders' Equity
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$250,000
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$296,000
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Delta Designs, Inc.
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Balance Sheet
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December 31, 2018 and 2017
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2018
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Percent of Total
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Assets
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Total Current Assets
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$32,250
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%
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Property, Plant, and Equipment, Net
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180,750
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%
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Other Assets
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37,000
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%
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Total Assets
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$250,000
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%
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Liabilities
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Total Current Liabilities
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$30,500
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%
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Long-term Debt
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80,750
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%
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Total Liabilities
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111,250
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%
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Stockholders' Equity
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Total Stockholders' Equity
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138,750
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%
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Total Liabilities and Stockholders' Equity
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$250,000
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%
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