Balance sheets

Key elements of a balance sheet

Purp of Fin. Stmts: a perception of the financial position and financial health of the firm

differ btwn long-tern and current assets and liabilities

internal External

• managers track health on day to day basis 1) Debtholder (understand risk-lvl

• Key ratios to set benchmark 2) Equity- 1Holders:Porspectsfor                                                                                                                      growth

understand concepts of liquidity and network capital

evaluate impact of depreciation and balance sheet and market value of equity