632598256894

profitability to keep investing for further growth. It generates sufficient cash from operations to
cover all investment needs while also reducing outside financing.
Balance Sheet
Note what this balance sheet tells us:
• This company grew its total assets by $13,525, from $38,625 to $52,150.
• But total liabilities increased only by $595, from $10,187 to $10,782.
• Therefore net assets grew by $13,525 less $595, which is $12,930.
• This $12,930 is the same amount by which total equity increased from $28,438 to $41,368,
because, as we know: Total Assets = Total Liabilities + Owner Equity.
You may have observed that there are only two years of balance sheets but three years of income
statements and cash flow statements. This is because these public company financial statements were
obtained from filings with the U.S. Securities and Exchange Commission (SEC), and the SEC
requirements for corporate annual report filings are two years of balance sheets, plus three years of
income statements and cash flow statements.
These corporate financial statements contain numbers very much larger than those for Nutrimin.
But there is no difference in the general format of these two sets of financial statements.