what information would be found in each of the following groupings on a classified balance sheet
After you've looked those groupings up in your text, please post what you've found.
explain what information would be found in each of the following groupings on a classified balance sheet, and how that data could indicate the future success or failure of a business:
o Current assets
o Long-term investments
o Property, plant, and equipment
Intangible assets
do they want the definition of it and how they interact with a balance sheet?
You can post the information these groupings contain on a balance sheet.
1-1-08 ferndell had a/r $56900 and allowance for doubtful account $4700. jan 5 Ferndell prepares financil statement, prepare the necessary journal.
sold $6300 of merchandise to john, terms n/30. Cost of good was $5,100.
Feb 2 accept a $6300, 4-month, 10% promissory from john.
feb 12 sold $7800 of merchandise to candy and accepted candy's $7800, 2 month, 10% note for the balance. the cost of good sold was $6,200.
Feb 26, sold $4000 of merchandise to tom, terms n/10. The cost of goods sold was $3500.
Apr. 5 accepted a $400, 3-month, 8% note from betty.
Apr.12 collected johns note in full.
June2 collected candy's note in full.
July 5. betty dishonors its note of Apr 5. It is expected that betty will pay the amount agreed to.
July 15, Sold $7,000 of merchandise to barry $7000, 3-month, 12% note for the amount due. The gross profit on the sale was $2,800.
Oct 15 Barry's note was dishonored and there is no hope of collecting.
Please help if you can.
On a classified balance sheet, the following groupings are typically presented:
1. Current Assets: This section includes assets that are expected to be converted into cash or used up within a year or the operating cycle of the business. The information found here may include:
- Cash and cash equivalents
- Short-term investments
- Accounts receivable (amounts owed by customers)
- Inventory (goods held for sale)
- Prepaid expenses (expenses paid in advance)
2. Long-term Investments: This section includes assets that are not expected to be converted into cash within a year. The information found here may include:
- Marketable securities
- Investments in stocks or bonds of other companies
- Long-term notes receivable
3. Property, Plant, and Equipment: This section includes tangible assets used for long-term operations. The information found here may include:
- Land
- Buildings
- Equipment
- Vehicles
- Accumulated depreciation (total accumulated depreciation of the above assets)
4. Intangible Assets: This section includes non-physical assets that provide value to the company over the long term. The information found here may include:
- Goodwill
- Patents
- Trademarks
- Copyrights
- Brand names
5. Current Liabilities: This section includes obligations that are expected to be settled within a year. The information found here may include:
- Accounts payable (amounts owed to suppliers)
- Short-term debt
- Accrued expenses (e.g., salaries payable, rent payable)
6. Long-term Liabilities: This section includes obligations that are not due within a year. The information found here may include:
- Long-term debt
- Notes payable
- Pension liabilities
7. Shareholders' Equity: This section represents the net worth of the company, which is the residual interest of the owners in the assets of the business after deducting liabilities. The information found here may include:
- Common stock
- Preferred stock
- Retained earnings
- Treasury stock
It's important to note that the specific information presented on a classified balance sheet may vary depending on the company and its reporting requirements.