Lessons: Chapter 5 - What the Balance Sheet Reveals
Important Links
Breaking down the balance sheet: Balance Sheet: Balance Sheets
Video on the balance sheet: Balance Sheets
Video: How To Read a Balance Sheet
Video from MoneyWeek on balance sheets: MoneyWeek Video
Video on how to create a balance sheet: Balance Sheet Creation
Assignments
5.1: What does the book value of a company represent?
5.2: Company A is exactly like Company B except that B has borrowed more money than Company B, which company will have a higher book value?
5.3: If a company needs to pay a bill one year from now, which of these items on its balance sheet can best tell if it can easily do so?
Total Assets
Total Assets divided by Total Liabilities
Current Assets
Current Assets divided by Current Liabilities
Current Liabilities