Questions tagged [balance-sheet]

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37 votes
2 answers
7k views

What does "gold reserves" on a gold mining company's balance sheet mean?

From a Reuters article: On Wednesday, [Newmont Mining Corp] reported gold reserves of 68.5 million ounces for 2017, unchanged from 2016, as it replaced reserves through exploration, projects, ...
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14 votes
5 answers
622 views

Why would a company with a bad balance sheet be paying dividends?

As an example, Ford Motors recently reinstated its dividend. It still has a lot of debt and a high debt-equity ratio. Its bonds are still rated as junk. Why would a company like this spend its cash ...
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11 votes
6 answers
182k views

If something is coming into my account will it be debit or credit in my account?

I have made a small balance sheet on google docs for my monthly expenses and income. If something comes into my account, would that be a credit or a debit in my account? If I got 500 from somewhere, ...
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8 votes
2 answers
54k views

Lending money to someone: how to book?

I'm trying my hand at double-entry bookkeeping for my personal finances. While I get the gist, I have trouble with the details. Please bear with me if I use the wrong terminology. I have lent some ...
8 votes
3 answers
61k views

How do you determine "excess cash" for Enterprise Value calculations from a balance sheet?

The formula for Enterprise Value that I often see is: EV = Total Debt + Market Cap - Cash Often "Cash" is refined further as "Excess Cash" in this formula. My question is how can I determine the ...
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7 votes
4 answers
737 views

Correct calculation for determining real business book value per share?

I'm trying to calculate the real value of a business and, as an example, I picked Netflix. From their latest financial statements I can see that: Assets value is: $3,065,709,000 Liabilities value ...
  • 71
7 votes
1 answer
18k views

What does negative Total Equity mean in McDonald's balance sheet?

What does negative Total Equity mean in McDonald's balance sheet? Please refer to https://finance.google.com/finance?q=NYSE%3AMCD&fstype=ii&ei=3ZDCWaDdFcyauATPnb6wBg For "Total Equity" row, ...
6 votes
2 answers
421 views

Nit picky personal accounting question: What is the right way to record borrowing from yourself?

I keep a spreadsheet with my personal financial statements (balance sheet, income statement, cash flow) that generally follows the corporate approach. I omit considerations of depreciation, etc. There'...
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6 votes
1 answer
233 views

How do I interpret these income tax numbers for Chinese public company Dangdang Inc. (DANG)?

I'd like some help with understanding the financial statements of E Commerce China Dangdang Inc (ADR). You can see the Income Statement/Balance Sheet/Cash Flow statements on Google Finance. If you ...
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5 votes
1 answer
4k views

Can I see how a company is using its debt?

How can I understand the way that way a company is using its borrowed funds? From the balance sheet I can see how much debt the company issued, and how much is paid back. But how can I see if the debt ...
  • 73
5 votes
2 answers
3k views

Does money made by a company on selling its shares show up in Balance sheet

When we purchase shares of a company for a certain sum of money (e.g: 1000 dollars), is this money immediately available to the company as a cash flow? In the balance sheet, will this money show up ...
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5 votes
4 answers
1k views

Book for balance sheet reading? [closed]

What is an easy to understand book that teaches a beginner how to read a balance sheet? Something like a Balance Sheet for Dummies?
  • 15.8k
5 votes
4 answers
12k views

Why doesn't change in accounts receivable on balance sheet match cash flow statement?

If we take a look at the balance sheet for Microsoft, I see Net Receivables as 21,485,000 [2014] and 19,118,000 [2013] On the cash flow statement, I see Changes In Accounts Receivables as (1,120,000)...
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5 votes
1 answer
291 views

Apple's Cash Pile

According to this article (and many others), Apple has a massive cash pile of 137 billion. However, if I look at their Financial Statements, it shows (as of 2012-12-29) they only have 40 billion in ...
  • 211
3 votes
2 answers
5k views

Per Capita Income VS. Household Income

One assertion I've read quite frequently is that household income is declining in the United States and that wages are not keeping up with inflation. In essence, these articles indicate that we're ...
3 votes
1 answer
365 views

UK companies house - what can I glean from an abbreviated balance sheet?

I am trying to research someone who wants to do business with me. UK companie's house does not seem to have a profit & loss on file, just an abbreviated balance sheet? I removed the company umber,...
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3 votes
1 answer
2k views

Quickbook Balance Sheet showing strange numbers (to me at least)

I have been using quickbooks for some time (less than a year) and today when I was looking at my balance sheet I noticed something that seems really strange to me. My Total Assets number is $300,000. ...
3 votes
1 answer
184 views

Should rented software be included on my LLC's balance sheet?

I am an incorporated freelance user experience (UX) designer with an LLC, and my state requires a personal property return with a balance sheet every year. I'm using cash accounting for my business ...
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3 votes
1 answer
172 views

Accounting Question - How Capital Investments are Tracked?

Based on the micro-balance sheet below - please help explain the following scenarios: 1st year we lost money - how will the capital account look at the end of the year? 1st year we break even - how ...
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3 votes
1 answer
168 views

What motivates Revlon's negative sharedholder's equity?

I am looking at Revlon's 10K and see stockholder's equity is negative.What motivates Revlon's negative stockholder equity? Why does it make sense for them to operate like this?
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3 votes
1 answer
531 views

What is "liquidation preference", and what are its terms?

I'm new to reading balance sheets. I'm doing research on a company and noticed on page 5 of their balance sheet a long list of shares issued and outstanding with "liquidation preference $0.0001 per ...
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3 votes
1 answer
568 views

Is my HOA's balance sheet healthy?

I'm purchasing a condo and trying to evaluate if the association is financially healthy. Are there any red flags in this balance sheet or income statement? There are 200 units and utilities are ...
  • 130
3 votes
1 answer
207 views

Depreciation question from Benjamin Graham book

I am reading The Interpretation of Financial Statements by Benjamin Graham. Ch. VI, Depreciation and Depletion contains the following wording: When property is retired its gross value is deducted ...
2 votes
4 answers
777 views

Why does ExxonMobil's balance sheet show more liabilities than assets?

In analyzing balance sheet of ExxonMobile, based off of Yahoo Finance report, we run into the following figures for the year: Current Assets: 51,647,000 Total Liabilities: 175,592,000 Now Current ...
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2 votes
3 answers
11k views

How does writing off a bad debt affect the balance sheet?

I was reading an article about financial statements, and I came across the term "Bad Debt" which falls under the category of unusual expenses on an income statement. Some companies just write off a ...
  • 131
2 votes
2 answers
222 views

Pass through entity’s year start balance

I am the owner of a single-member LLC and am taxed as a pass through entity. At the beginning of the year is a pass through entity’s cash balance always considered $0 with respect to a balance sheet? ...
2 votes
2 answers
415 views

Debt to asset ratio calculation

When try to calculate debt-to-asset ratio, I came across different formulas. There are: Total debt divided by total asset, where Total debt = short-term debt + long-term debt from Balance Sheet. ...
2 votes
2 answers
6k views

How to account for Unrealized Gains in a Trial Balance?

Using GnuCash, When I run a Trial Balance on my accounts, my Debits exceed my Credits by 875.00 wich is the same amount of my Unrealized Gains on the Balance Sheet. How do I reconcile this in my ...
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2 votes
2 answers
1k views

Balance Sheet Retained Earnings

Trying to get my head around a balance sheet and can't make sense of the fact that a company can make year on year profits and pay out dividends each year, yet the retained earning deficit increases ...
  • 155
2 votes
1 answer
540 views

How to figure out interest received from 'cash and cash equivalents' in a balance sheet?

Looking at APPL's balance sheet, I can see that they have a few million as cash and cash equivalents. I want to know more about cash and cash equivalents. I understand that cash and cash ...
  • 1,673
2 votes
1 answer
2k views

What does "issued XXX and YYY shares" mean?

I'm looking at a random company, Hain Celestial Group (HAIN). Their 10-Q from 2014-11-07 says on the first page: "As of November 3, 2014 there were 50,460,313 shares outstanding of the registrant’s ...
2 votes
2 answers
2k views

Do banks "mark to market" the bond prices in their financial statements?

In fact my real question behind is the following: If US or German bonds decrease by say 5% over a quarter, and a publicly traded company owns the bonds, do they have to reflect the price change every ...
2 votes
1 answer
918 views

what is shareholders' Equity in balance sheets?

Just stated learning about financial statement it is the tough, lots of calculations and stuff. I came across some balance sheets, read some online resources but I still can't grasp the idea of why ...
2 votes
1 answer
447 views

GnuCash Loan and Credit Card showing as debits

Setup GnuCash 2.6.12 Ubuntu 16 $10,000 loan from external party (Brandon) In the official GnuCash documentation, it states that: GnuCash treats account types Credit Card and Liability the same. ...
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2 votes
1 answer
928 views

How to Create Personal Balance Sheet and Budget Plan for Several Accounts

I think the idea suggested in book Secrets of the Millionaire Mind that using several bank accounts to handle money is a good idea. So I opened a few bank accounts and tried to create my personal ...
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1 vote
3 answers
25k views

How to find a public company's balance sheet and income statement?

In the U.S., if a company's stock is publicly traded, it is legally required to file public financial disclosures to Securities and Exchange Commission. How can I find the balance sheet and income ...
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1 vote
2 answers
124 views

Can long-term assets ruin the balance in the balance-sheet?

I'm coming from non-accounting and non-finance backgrounds. I need help in form of understanding through a question. I want to ask about something related to the balance of a balance-sheet. ...
1 vote
1 answer
142 views

Calculating EPS

I have started teaching myself basic business stuff and have a question regarding calculating earnings per share. Q: [bunch of numbers for revenue, expenses...] At the beginning of year: 80,000 ...
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1 vote
1 answer
157 views

What happens to the Equity::Opening Balances account over time?

I took the advice of others here and the docs when I started my GNC instance a few years ago. For the first year of operation, I chucked everything I discovered I hadn't yet tracked into Equity::...
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1 vote
1 answer
735 views

Why does Apple issue new common stock every year (even though it has enough cash)?

Apple has so much cash. It really doesn’t have to raise additional capital yet every single year it issues new common stock. Why is that?
  • 19
1 vote
3 answers
69 views

The cost of capital Equity versus Debt

Trying to understand something basic about cost of capital that I can't seem to wrap my head around. When we talking about issuing debt to raise funds for a project, the cost of capital is the ...
1 vote
2 answers
94 views

Video/Article of someone going through a company's balance sheet? [closed]

I'm basically looking for a (rough) financial analysis of a company. I'd prefer a bank, but if it's an insurance company or a corporate it's fine, too. I know I can read up on the different ...
1 vote
1 answer
133 views

Assets != Equity + Liabilities

could anyone explain to me, in this balance sheet, which items are assets, which items are liability, and which items are equity? Are funding debt and Notes issued liability? Is redeemable convertible ...
1 vote
1 answer
56 views

Debt-equity Ratio & Current Ratio Relationship

I’m not understanding the current ratio and debt to equity ratio. I thought the current ratio is assets/liabilities And debt to equity is well, debt/equity. What doesn’t make sense is how can a ...
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1 vote
1 answer
355 views

Accounting Question - Combining Vertical Analysis with Horizontal Analysis of financial statements?

Firstly I understand the concept of vertical analysis (representing line items as percentage of either total asset or revenue), and horizontal analysis (calculating the year-on-year changes or %...
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1 vote
3 answers
826 views

Why do the balance sheets of some large firms not balance?

I'm working my way through some accounting textbook and struggling to understand why some balance sheets on Yahoo Finance don't balance, as in: total assets - total liabilities != total shareholders ...
  • 121
1 vote
1 answer
67 views

What does it mean on a 10-K balance sheet when a field is blank for a single year?

I am looking at a corporate balance sheet in a 10-K for Chipotle and the line for Long term investments is $125b for 2016, but blank for 2017. What does it mean when a company doesn't list this info ...
  • 209
1 vote
1 answer
627 views

What does "Additional paid-in capital" mean on a balance sheet?

I was looking at the balance sheet of a publicly traded startup and noticed that the amount of cash they have increased even though they are operating at a loss. There's an item in the liabilities ...
1 vote
1 answer
142 views

Balance Sheet: Is it appropriate to list your company's annual budget as a Current Liability?

Accounting basis: accrual. I've estimated an arbitrary budget for my Company's next 12 months. Some of the values on there are precise certainties (such as my salary). Some of them are best guesses ...
1 vote
1 answer
51 views

Where on the balance sheet do I find these items? [closed]

I am preparing for an interview for a banking role (on the tech side, but with exposure to business aspects), and have found out some questions I might be asked, wrt to where on the balance sheet the ...
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