1 / 8

Net Worth Statements

Net Worth Statements. Original PowerPoint Created by Mike White Modified by Georgia Agricultural Education Curriculum Office June, 2002. Ag Business Management Spring 1999. Objectives. Distinguish between assets and liabilities. Give examples of each category of assets and liabilities.

Download Presentation

Net Worth Statements

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Net Worth Statements Original PowerPoint Created by Mike White Modified by Georgia Agricultural Education Curriculum OfficeJune, 2002 Ag Business Management Spring 1999

  2. Objectives • Distinguish between assets and liabilities. • Give examples of each category of assets and liabilities. • Describe the structure and major components of a balance sheet. • Accurately transfer financial information to a balance sheet.

  3. Purpose of a Net Worth Statement • Shows financial condition at a specific point in time. • Shows solvency (do assets exceed liab. ?) • Measure liquidity (will firm meet financial obligations?)

  4. Purpose of Net Worth Statement • Financial Condition - cont. • Evaluate risk-bearing capacity (how much loss could business sustain?) • Identify collateral (avail. to support loan) • Compare records over time to see trends.

  5. Components of Net Worth St. • Assets • Liabilities • Owner Equity

  6. Assets • Current • Used or sold and converted to cash within 12 months • Non-current • Used in producing a product or not sold and not converted into cash within 12 months.

  7. Liabilities • Current • Payable within one year. • Non-current • Due in more than one year.

  8. Owner Equity • Total assets - Total liabilities • Same as Net Worth

More Related