Balance Sheet Example
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Free balance sheet example template and a business planning course for aspiring leaders.

The balance sheet provides a manager or potential investor with a snapshot of an organization for a single point in time. For instance, if the date listed on the financial statement say January 30, 2006 Balance Sheet, you can be certain that the numbers provided are only accurate on that specific date in time.

Many times business analysts overlook the importance of the balance sheet. Instead, they tend to focus more on the income statement because they are most interested in actual earnings rather than a simple listing of assets and liabilities.

While earnings are of the utmost important, one needs to review the all of the available financial data in order to complete a proper analysis of the fitness of the organization.

An easy way to describe the balance sheet is to point out the by subtracting the liabilities from all the assets of a company, the remaining difference is the equity or net worth. The net worth shows, in part, the current strength of the organization.

A high net worth means a stronger foundation than a low net worth. A high net worth equates to a lower level of risk to the organization.

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The reason that this statement is called a balance sheet is that both sides of the statement MUST balance. In other words, Assets = Liabilities + Equity

The left hand side of our balance sheet example lists the assets in the following order:

• Current Assets = Cash, Accounts Receivable and other assets that can quickly be converted into ready cash.
• Non-Current Assets = Property, Equipment and other long-term assets that are certainly worth something but might take longer to convert to cash.
• Other Assets = Goodwill and basically anything that doesn’t really fit into one of the other two categories above.

The right hand side of our balance sheet example lists the liabilities and equity in the following order:

• Current Liabilities = liabilities of the organization that are due within the next 12 months.
• Non-Current Liabilities = debt which will not become due in the next 12 months.
• Equity = this equates to the difference between total assets and total liabilities and may also reveal amounts of equity held in common or preferred stock, treasury stock and retained earnings.

Learn more about the balance sheet example template and the Balance Sheet Review, by utilizing these free sample business plans.

Many years ago, the President of Bradstreet’s, the late Charles F. Clark was quoted as saying, “The structure of our society is based on the confidence of the consumer. We could have no civilization were it not for the fact that millions of men and women in the past were deemed worth of credit by their fellow countrymen.”

“I should like to say,” continues Mr. Clark, “as strongly as possible, to every young business person that one of the chief aims of your daily work should be to strengthen your reputation for quality and honesty.”

There is a real lesson to be learned from Mr. Clark’s historic words of advice. Good intentions alone do not make a good reputation.

Good intentions must be paired with true ability in order to carry out your claims. You must continually prove your ability; turn your promises into successful results and routinely meet or exceed your business obligations.

Highly credible managers of the past did not enjoy the convenience of what technology provides us today. Don't miss any key information to the balance sheet example provided in the business planning course - ensure your success using the only business planning product we recommend.

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» Income Statement Review
Receive a free income statement sample template, along with multiple examples of business plans complete with income statements.

» Cash Flow Statement Review
Receive a free sample cash flow statement template, along with multiple examples of business plans complete with cash flow statements.

» PART X The Appendix
Using the business free plan template, you will learn to provide all supporting documentation in the appendix of the business plan.

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