Aquileo | Balance Sheet with Examples

A balance sheet is a type of financial statement that shows the assets, liabilities, and shareholder equity of a business at a certain point in time. The balance sheet serves as the basis for determining investor rates of return and evaluating a company's financial structure. In a nutshell, the balance sheet is a financial statement that displays the assets and liabilities of a business together with the amount of money spent by shareholders. Balance sheets can be used in conjunction with other important financial documents for financial ratio computations and fundamental analysis.

Key Takeaways:

A balance sheet is a type of financial statement that shows an organization's assets, liabilities, and shareholder equity.
It offers a quick glance into the assets and liabilities of a business as of the publishing date.
The assets on the balance sheet are equal to the sum of the liabilities and shareholder equity.
Financial ratios are computed by fundamental analysts using balance sheets.

Example of a Balance Sheet

XYZ Inc.
Consolidated Balance Sheet

Total Assets	1900	1000
	September 30, 2024 (In thousand US $)	September 30, 2023 (In thousand US $)
Assets
Current Assets: Cash and Cash Equivalents Marketable Securities Accounts Receivable, Net Inventories Vendor Non-Trade Receivables Other Current Assets	200 400 150 250 100 300	100 200 75 125 - 100
Total Current Assets	1,400	600
Non Current Assets: Marketable Securities Property, Plant, and Equipment Other Non Current Assets	100 250 150	100 150 150
Total Non Current Assets	500	400
Liabilities and Shareholder's Equity
Current Liabilities: Account Payables Deferred Revenue Commercial Papers Term Debt Other Current Liabilities	100 100 150 50 50	100 50 150 60 140
Total Current Liabilities	450	500
Non Current Liabilities: Term Debt Other Non-Current Liabilities Total Non-Current Liabilities	150 150 100	100 150 50
Total Non-Current Liabilities	400	300
Total Liabilities	850	800
Shareholders Equity Common Stock and Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income/(loss)	550 200 300	100 125 75
Total Shareholders' Equity	1050	300
Total Liabilities and Shareholders' Equity	1900	1100

Conclusion

The total balance that results from summing all of the debits and credits is known as the footing in accounting. An essential financial tool, a balance sheet computes a company's assets together with its liabilities and equity. Although the data on a balance sheet is typically not as useful as that on an income statement, a corporation can nevertheless utilize it to make internal choices. A business may use its balance sheet to assess risk, confirm that it has adequate cash on hand, and choose whether to borrow additional funds (either through debt or stock).

Balance Sheet with Examples

Key Takeaways:

Example of a Balance Sheet

Conclusion

Explore