The Balance Sheet

1
The Balance Sheet

• Book value does not equal market value
• but it does help determine market value
• Major classifications

2
Financial Position

• Overview
• Contents
• Additional disclosure

3
Balance Sheet Overview

• Statement of financial position
• B/S does not always portray FMV
• Information regarding
• Solvency
• Liquidity
• Financial flexibility

4
Balance Sheet Content

• Tour of the balance sheet
• FedEX pps. 121-128
• Consider Sepia Paint Co. pps. 128-129

5
Disclosures

• Footnotes
• Summary of significant accounting policies
• Subsequent events
• Noteworthy events transactions
• Management Discussion Analysis-MDA
• Management letter
• Auditors Report
• Unqualified
• Qualified
• Adverse
• Disclaimer
• Going concern
• Proxy statement