1. Nick Garcia, Ric Ross, Raisah Salhab, Megan Stanley, Jimee Truong
The Balance Sheet
Team 15
Nick Garcia, Ric Ross, Raisah Salhab, Megan Stanley, Jimee Truong

2. Objectives Define a balance sheet
Discuss the importance of a balance sheet
Identify the components of a balance sheet
Explain when balance sheets are published
Explain who prepares a balance sheet
Describe where balance sheets can be located for companies

3. Assets = Liabilities + Owners’ Equity
What is a Balance Sheet?
The balance sheet is a snapshot of a firm's financial status at one point in time
Assets, Liabilities, Owners’/Shareholders’ Equity
Assets = Liabilities + Owners’ Equity

4. Why is a balance sheet important?
Paints a picture of the firm’s financial state at a given time
Being aware of the financial status of a business is vital to running it
Documentation: It is an efficient way to track expenditures and assets to gain a good idea of where the firm is at financially
Knowing the financial status of a firm is important in making any financial and investment decisions

5. The Balance Sheet Components
Assets: Things of value that the business owns
Cash, furniture, land
Liabilities: Amounts that the firm owes to others like suppliers
Notes or wages payable
Owner’s equity: Claims of the owner
Capital or retained earnings

6. Assets Current assets Cash Prepaid expenses
Items that have been paid for but not yet used or consumed
Inventory may be the largest current asset
Goods ready for sale, raw materials
Value of inventory on a balance sheet is the cost required to replace it if the inventory were to be destroyed, lost, or damaged
Fixed assets
Distinguished from current assets by their longevity
Not for resale
Furniture, buildings, land

7. Assets

8. Liabilities Arranged in how soon they must be repaid
Current liabilities
Taxes payable
Notes payable to banks
Wages and salaries
Obligations to creditors due within 1 year
Long-term liabilities
Debts that must be repaid after more than 1 year
May include start-up financing from banks, finance companies

9. Liabilities and Stockholders’ Equity

10. Liabilities and Stockholders’ Equity

11. When are balance sheets published?
Prepared and published at the end of the close of an accounting period
Month-end
Quarter-end
Semi-annual
Year-end
The balance sheet can be seen as an important decision-making tool

12. Semi-annual Balance Sheet

13. Company Annual Report

14. Regulatory Filing

15. Published by Company and Auditors

16. Published by Company and Auditors

17. Where to find online Public Company Investor Relations Annual Report
Quarterly Filings
Financial News
finance.yahoo.com
Motley Fool
Securities and Exchange Commission
Complete
Complex

18. Motley Fool (fool.com)

19. Securities and Exchange Commission (sec.gov)

20. References
Kelly WN, Peterson AM, eds. Leadership and Management in Pharmacy Practice. 2nd ed. Boca Raton, FL: CRC Press; 2014.
Motley Fool. Available at: sonoma/wsm/sec-filings Accessed October 27, 2015.
Securities and Exchange Commission. Company Filings Search. Available at: Accessed October 27, 2015.
Williams-Sonoma. (2015) Annual Report. Retrieved from: ir.williams- sonomainc.com/sites/williams- sonomainc.investorhq.businesswire.com/files/doc_library/file/WS_14AR.pdf

21. Objectives Define a balance sheet
Discuss the importance of a balance sheet
Identify the components of a balance sheet
Explain when balance sheets are published
Explain who prepares a balance sheet
Describe where balance sheets can be located for companies