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
