5 Balance Sheet Current and Fixed Assets Current

5. Balance Sheet Current and Fixed Assets, Current Liabilities, Long Term Loans and Capital. Financial ratios, liquidity, debth service 9/9/2020 Balance Sheet 1

Every small link is important! 9/9/2020 Balance Sheet 2

Overview n n n 5. 1 Assets 5. 2 Current Liabilities (Short Term Debts) 5. 3 Long Term Debt 5. 4 Capital 5. 5 Financial Ratios 9/9/2020 Balance Sheet 3

Importance of Balance Sheet n n n Necessary to find Financial Ratios Shows well how everything in the model is linked together, Operating Statement, Cash Flow, . . . Very useful for finding logical errors and debugging 9/9/2020 Balance Sheet 4

Errors are like our shadow, always following us! 9/9/2020 Balance Sheet 5

Assets n Current assets: n n cash account debtors or accounts receivable inventory Fixed assets (booked value) 9/9/2020 Balance Sheet 6

Assets 9/9/2020 Balance Sheet 7

Current Liabilities (Short Term Debts) n n Dividend Payable Taxes Payable Creditors (accounts payable) Next year payment of loans 9/9/2020 Balance Sheet 8

Short Term Debt 9/9/2020 Balance Sheet 9

Long Term Debt n n Principals of loans Except Next Year Payment 9/9/2020 Balance Sheet 10

Capital n n Shareholders funds, Equity Profit & Loss Balance 9/9/2020 Balance Sheet 11

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Sure your model is debugged? 9/9/2020 Balance Sheet 13

Financial Ratios n n Profit / Capital Ratios Net and Liquid Current Ratios Capital / Equity Ratio Capital / Debt and Capital 9/9/2020 Balance Sheet 14

Financial Ratios 9/9/2020 Balance Sheet 15

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Computer models are powerful! 9/9/2020 Balance Sheet 18