• An accountant’s snapshot of the firm’s accounting value as of a particular date. • The Balance Sheet Identity is:
Assets ≡ Liabilities + Stockholder’s Equity
• When analyzing a balance sheet, the financial manager should be aware of three concerns:accounting liquidity, debt versus equity, and value versus cost.
The Balance-Sheet Model of the Firm
16Net Working Capital
Net Working Capital ≡ Current Assets – Current Liabilities
– NWC > 0 when Current Assets > Current Liabilities
– NWC < nwc =" 0" assets =" Current" style="font-weight: bold;">The Balance-Sheet Model of the Firm
The Net Working Capital Investment Decision
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This post is good it heps me understand balance sheet.keep up the good work business balance sheet
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