The total dollar amount of the assets is $7,380,000.00 or $7,380.00 in thousands and this can be found on the balance sheet. Some things that are considered assets are Land and Buildings, Machinery and Equipment, Furniture and Fixtures, and Vehicles. These represent categories so you know where to list the assets. Your building and any out structures and land that is owned needs to be accounted for. Machinery and equipment is a vast group as it could encompass things from computers all the way to the biggest piece of machinery your company has. If your company was to go under today, you wouldn’t just throw out all your chairs and desks. You would try to sell them and that’s why these are counted in furniture and fixtures.
The total dollar amount for liabilities is $3,127,000.00 or $3,127.00 in thousands and can also be found on the balance sheet. Liability is essentially debt that the company has and will have to pay. In this balance sheet it lists Accounts Payable, Short-Term Notes Payable, and Accruals and Other Current Liabilities. Things in these category include bank loans, money owed to suppliers, and taxes.
The retained earnings can be found on the balance sheet and is $375,000.00 or $375.00 in thousands. Retained earnings is what is left after all costs have been taken from the amount of money made and is represented as equity. This can be paid to the shareholders or reinvested in the company. Other examples of Stockholders’ Equity are Preferred Stock, Common Stock, and Paid-in capital.
Revenue can be found on the balance sheet as gross profits and is the revenue made from the product or service provided minus the cost of the company providing or preforming that task. This company shows to have a revenue of $1,425,000.00 or $1,425.00 in thousands. Expenses on the other hand are anything that is paid out. This can include taxes, interest, and depreciation expenses and can be found on the income statement as well and shows to be $1,094,000.00 or $1,094.00 in thousands.
While both the income statement and balance sheet are very important to any business, I believe that the income statement gives the most information. The balance sheet gives a lot of good information, but it does not break that information down into what I think most people would want to see. It basically shows totals and not the breakdown of how you got to the total. The income sheet is slightly more broken down, so a company or person looking at the income statement could see how the company actually functions. With the income statement you can see that you made $XX.XX amount of money by selling $X.XX amount of goods. Based on this information a person can tell if the company should raise the price of the product or maybe restructure the process of providing the product to lower costs. You are able to see other expenses too that are insightful, so a company knows where there money is going.