Post by account_disabled on Mar 6, 2024 5:34:53 GMT -5
The else.NonCurrent Assets CoolGadget has sunk into year bonds and other longterm investments. We like that forward thinking but it leaves the company worryingly short of current assets. The company also has a cool office space in downtown San Francisco decked out with giant flatscreen TVs on every wall an aquarium and a sauna. Hence the high figure for property plant and equipment. Intangible assets sounds like a bit of a vague category but actually its very important particularly in todays knowledgebased economy. It measures the value of CoolGadgets brand its intellectual property like patents and trademarks and other nonphysical assets. Other assets yep that bucket again.
Advertisement . Liabilities Here you can see the same breakdown Country Email List between current and noncurrent. In this case current liabilities means money that has to be paid out within a year. Longerterm debt is noncurrent. This part of the story shows that CoolGadget is in some trouble. Its current liabilities are higher than its current assets meaning that unless something changes pretty quickly it will struggle to pay its bills. Thats the kind of story the details of the balance sheet can tell you and in this case its looking as if it wont have a happy ending.
Again lets go through each line. Current Liabilities TVs on the company account and hasnt paid for them yet. Along with money it owes to suppliers that makes for an eyewatering in accounts payable. Think of this as like a creditcard balance you havent paid off. Accrued expenses are things that you know youll have to pay even if the bill hasnt come in yet. If youve made income and not paid tax on it yet for example youd record the expected tax bill as an accrued expense. NonCurrent Liabilities You can probably figure out what longterm debt means. CoolGadgets is hugethat swanky San Francisco office is probably mortgaged up to the hilt. Now we know where that large interest expense in the income statement.
Advertisement . Liabilities Here you can see the same breakdown Country Email List between current and noncurrent. In this case current liabilities means money that has to be paid out within a year. Longerterm debt is noncurrent. This part of the story shows that CoolGadget is in some trouble. Its current liabilities are higher than its current assets meaning that unless something changes pretty quickly it will struggle to pay its bills. Thats the kind of story the details of the balance sheet can tell you and in this case its looking as if it wont have a happy ending.
Again lets go through each line. Current Liabilities TVs on the company account and hasnt paid for them yet. Along with money it owes to suppliers that makes for an eyewatering in accounts payable. Think of this as like a creditcard balance you havent paid off. Accrued expenses are things that you know youll have to pay even if the bill hasnt come in yet. If youve made income and not paid tax on it yet for example youd record the expected tax bill as an accrued expense. NonCurrent Liabilities You can probably figure out what longterm debt means. CoolGadgets is hugethat swanky San Francisco office is probably mortgaged up to the hilt. Now we know where that large interest expense in the income statement.