The balance sheet is a financial statement showing a firm's accounting value on a particular date.
Table 2.1 shows a simplified balance sheet for the fictitious U.S. Corporation.
Balance Sheets as of December 31, 1995 and 1996
($ in millions)
|
1995
|
1996
|
1995
|
1996
|
||
| Assets |
Liabilities and
|
||||
| Current assets | Current liabilities | ||||
| Cash |
$ 104
|
$ 160
|
Accounts payable |
$ 232
|
$ 266
|
| Accounts receivable |
455
|
688
|
Notes payable |
196
|
123
|
| Inventory |
553
|
555
|
Total |
$ 428
|
$ 389
|
| Total |
$1,112
|
$1,403
|
|||
| Fixed assets | |||||
| Net plant and equipment |
$1,644
|
$1,709
|
Long-term debt |
$ 408
|
$ 454
|
| Owners' equity | |||||
|
Common stock and
paid-in surplus |
600
|
640
|
|||
| Retained earnings |
1,320
|
1,629
|
|||
| Total |
$1,920
|
$2,269
|
|||
| Total assets |
$2,756
|
$3,112
|
Total liabilities and owners' equity |
$2,756
|
$3,112
|
