Financial Management 102: Ratio Analysis-Sample Financial Statements

Sample Financial Statements

Pdf Summary

This document contains three sections on financial management. The first section provides a balance sheet for a typical AED distributor, including assets, liabilities, and net worth. The second section includes an income statement for the same distributor, detailing various expenses and revenues. The third section provides similar balance sheet and income statement information for a high-profit distributor. <br /><br />The balance sheet for the typical AED distributor shows various categories of assets, such as cash, accounts receivable, and inventory. Liabilities for the distributor include accounts payable, floor planning, and notes payable. The net worth or owner equity is also listed. The total assets, liabilities, and net worth are provided at the end of the balance sheet.<br /><br />The income statement for the typical AED distributor shows various expenses, such as cost of sales, salaries, utilities, advertising, and more. It also includes revenues from rental purchase option interest income and other sources. The statement calculates the net profit after tax, operating profit, and gross profit/margin.<br /><br />The balance sheet and income statement for the high-profit distributor follow a similar format to those of the typical distributor. The financials show higher values for assets, liabilities, and net worth, as well as higher expenses and revenues.<br /><br />These documents provide a snapshot of the financial health and performance of the two distributors. Ratio analysis can be performed using the information in these statements to evaluate the distributors' financial performance, efficiency, and profitability.

Keywords

financial management

balance sheet

AED distributor

assets

liabilities

net worth

income statement

expenses

revenues

high-profit distributor