Business Financing and Planning - Balance Sheet Statement Template

Balance Sheet Statement


Enter the cells with a yellow highlight



Date:

ASSETS		Amount	Percent

Current Assets:
	Cash
	Short-term securities
	Accounts receivable
	Less allowance for doubtful accounts
	Acct. rec. net realizable value
	Notes receivable
	Inventories
	Prepaid expenses:


	Total Current Assets

Long-term Investments:


	Total Long-term Investments

Fixed Assets:

Land:
	at cost
	less accum. depreciation
Land net book value
Buildings:
	at cost
	less accum.depreciation
Buildings net book value
Machinery & Equipment:
	at cost
	less accum.depreciation
Mach. & Equip. net book value
Furniture/Fixtures:
	at cost
	less accum.depreciation
Furniture/Fixtures net book value
Autos/Trucks:
	at cost
	less accum.depreciation
Auto/Truck net book value
Other:
	at cost
	less accum.depreciation
Net book value
	Total Net Fixed Assets

Other Assets:
	Cash surrender value of officer's life insurance
	Loans against policies
	Notes receivable
	Organization costs (net)


	Total Other Assets

	Total Assets



LIABILITIES		Amount	Percent

Current Liabilities:
	Lines of credit
	Accounts payable
	Short-term notes
	Notes payable, current portion
	Taxes payable
	Accrued & withheld payroll taxes
	Accrued expenses



	Total Current Liabilities

Long-term Liabilities:
	Notes Payable:
	Outstanding balance
	less curr. portion due
	Notes payable net



	Total long-term liabilities

	Total Liabilities



EQUITY		Amount	Percent

	Common stock
	Owners' equity
	Retained earnings
	Additional capital contributions
	Stock purchases

	Total Equity

	Total Liabilities & Equity



RECONCILEMENT OF EQUITY		Amount

Equity at beginning of period
Plus:
	Net Income after taxes (or Less: Net Loss)
Plus:
	Additional Capital Contributions by Owner(s) or Stock Purchases by Shareholder(s)
Less:
	Total Deductions (Withdrawals by Owners or Dividends to Shareholders)
Equity as shown on current Balance Sheet

Important Balance Sheet Ratios

By looking at a balance sheet, a business owner can use several simple benchmarks to analyze the health of a business and help make good decisions in managing the company.

Working Capital =
Total Current Assets - Total Current Liabilities =

Working capital simply shows whether a company is making or losing money, and is used by lenders to evaluate whether a company can survive hard times. It should always be a positive number. Loan agreements often specify how much working capital the borrower must maintain.

Current Ratio =
Total Current Assets/Total Current Liabilities =

The current ratio measures financial strength. The number of times current assets exceed current liabilities shows the company's solvency. It answers the question, "Does my business have enough current assets to meet the payment schedule of current liabilities with a margin of safety?" In general, a strong current ratio is two or more. Of course, this will depend on the type business and the type of the current assets and current liabilities. A very high current ratio might mean that cash on hand isn't being used efficiently. For example, it might be a good time to invest in updated equipment for greater productivity.

Quick Ratio =
(Current Assets - Inventory)/Current Liabilities =

The quick ratio measures a company's liquidity by looking only at a company's most liquid assets and dividing them by current liabilities. It helps determine whether a business can meet its obligations in hard times. "Quick" assets are cash, stocks and bonds, and accounts receivable (i.e., all current assets on the balance sheet except inventory). Quick ratios between .50 and 1.0 are usually considered satisfactory if receivables collection is not expected to slow.

Debt/Equity Ratio =
Total Liabilities/Total Equity =

The debt/equity ratio indicates a company's solvency. It is a measure of how dependent a company is on borrowing rather than equity.

Automatic recalculation

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