Understanding Stocks
Understanding Stocks
Understanding Stocks
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94 UNDERSTANDING STOCKS<br />
Bright Light Balance Sheet<br />
(in thousands)<br />
ASSETS<br />
December 31, December 31,<br />
2002 2001<br />
Current Assets<br />
Cash and cash equivalents 1,196 1,098<br />
Accounts receivables 1,637 1,367<br />
Inventories 528 530<br />
Deferred income taxes 158 120<br />
Property and equipment 978 877<br />
Other assets 325 103<br />
—————— ——————<br />
Total Current Assets: 4,822 4,095<br />
LIABILITIES AND STOCKHOLDER’S EQUITY<br />
Current Liabilities<br />
Accounts Payable 879 525<br />
Accrued Expenses 578 502<br />
Income taxes payable 186 179<br />
Current Portion of Long-Term Debt 98 75<br />
—————— ——————<br />
Total current liabilities: 1,741 1,281<br />
Stockholder’s Equity<br />
Common stock 1,567 1,567<br />
Retained earnings 1,514 1,247<br />
—————— ——————<br />
Total stockholder’s equity: 3,081 2,814<br />
Figure 9-1<br />
Total liabilities and<br />
stockholder’s equity: 4,822 4,095<br />
Simply put, a balance sheet is a list of everything a company owns<br />
and everything it owes. This gives shareholders a snapshot of the company’s<br />
finances. The best way to study a balance sheet is to compare it<br />
to the balance sheets of other companies in the same industry. In addition,<br />
you should look at the balance sheet for previous years to get a<br />
better idea of where the company has been and where it might be going.
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