Presentation on theme: "Chapter 5 Understanding Balance Sheets"— Presentation transcript:
1Chapter 5 Understanding Balance Sheets Presenter’s namePresenter’s titledd Month yyyyCustomization notes:Hyperlinks to the annual reports of companies used in this presentation are provided at the bottom of certain pages. If the presenter saves the annual report to the same computer drive on which the PowerPoint presentation is saved, clicking the hyperlink will take the presenter to the annual report. Note also that the relevant items are bookmarked in each annual report PDF. To navigate to the bookmarked pages, select the bookmark icon once the PDF is open (2nd down on far left of screen when PDF is opened).LEARNING OUTCOMESDescribe the elements of the balance sheet: assets, liabilities, and equity.Describe uses and limitations of the balance sheet in financial analysis.Describe alternative formats of balance sheet presentation.Distinguish between current and noncurrent assets, and current and noncurrent liabilities.Describe different types of assets and liabilities and the measurement bases of each.Describe the components of shareholders’ equity.Analyze balance sheets and statements of changes in equity.Convert balance sheets to common-size balance sheets and interpret the common-size balance sheets.Calculate and interpret liquidity and solvency ratios.