1.FunctionsofBalanceSheet(1)Evaluating andpredicting shortterm solvency of a businessSolvency means the financial ability of acompanyto pay debtswhentheybecome due.(2)Evaluating andpredicting capitalstructure and long-term solvencyLong-term solvencyof abusinessisdetermined by bothits profitability and capitalstructure.11
11 1.Functions of Balance Sheet (1)Evaluating and predicting shortterm solvency of a business Solvency means the financial ability of a company to pay debts when they become due. (2)Evaluating and predicting capital structure and long-term solvency Long-term solvency of a business is determined by both its profitability and capital structure
2.FormatofBalanceSheetThebalance sheethastocontain:Name of thebusinessName of thefinancial statementDate of thereportThefinancial itemsitreflectsHuntningtonGalaryBalancesheetDecember31.200912
12 2.Format of Balance Sheet The balance sheet has to contain: ➢ Name of the business ➢ Name of the financial statement ➢ Date of the report ➢ The financial items it reflects Huntnington Galary Balance sheet December 31,2009
Assets,Liabilities andowner'sequityarelisted on abalance sheet,and accordingtotheir liguidity,the items are subcategorizedandlistedseparately13
13 Assets, Liabilities and owner’s equity are listed on a balance sheet, and according to their liquidity, the items are subcategorized and listed separately
Statementof Financial PositionGeneral Electric Companyandconsolidotedailiates20082007AtDecember31JinmilionsexceptshareamountsASSETS$15,731$48,187Cashandequivalents45.27641,446Investmentsecurities(Noteg)21,41122.259Currentreceivables(Note10)13,67412.897Inventories(Note11)365,168376,123Financingreceivables-net(Notes12and13)16.51413,439OtherGECSrecevables77.88878,530Property.plantandequipment--net(Note14)Investment inGECS二81,75981,116Goodwill(Note15)14,97716.142Otherintangibleassets-net(Note15)106,899122.848Allotherassets (Note16)10,556Assetsofbusinessesheldforsale(Note17)-8.8891,723Assetsofdiscontinuedoperations(Note2)$797,769$795.683Totalassets
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