Preparing The Balance Sheet Statement Report

Balance Sheet

FINANCE 1
Purpose of Balance Sheet
The main purpose of preparing the Balance sheet statement is to show the financial
performance of the firm over the specific period of time. The balance sheet statement of the
company represents the assets and liabilities and the amount invested by the shareholders
(equity). The information contains in the balance sheet depicts the financial performance of the
firm. Assets are the capital value of the company which is used to pay all the short and long
term liabilities. The amount of cash is also represented in the balance sheet which states that the
ability of the firm to pay the dividend amount. The main aim of recording the assets and
liabilities in the balance sheet states the ability of the company to drive the business smoothly for
long term (Accounting Tools, 2019).
Balance Sheet Analysis
Common-Size Analysis
Balance Sheet
2011 2012
Current Assets 38147 21% 43175 22%
Non-current Assets 141101 79% 149191 78%
Total Assets 179248 100% 192366 100%
Current Liabilities 32825 20% 35228 20%
Non-current liabilities 131352 80% 140827 80%
Total Liabilities 164177 100% 176055 100%
Equity 15071 100% 15989 100%

FINANCE 2
According to Common-Size Analysis of balance sheet of Ford Motors, it has been seen
that the firm has the high amount of non-current assets among the total assets with the percentage
of 78%. The current asset of the company is 22% which is less as compare to the non-current
assets. In liabilities, the current liabilities have 20% and non-current liability has 80% which
states that the company finances its operation activities by borrowing the money on debt (Ford
Motor Company, 2012). According to analysis, current assets is 22% and current liabilities is
20% which states that the company liquidity position is good as it has the ability to pay the
current liabilities or the short term expenses (Robinson, 2020).
Ratio Analysis
Ratio Analysis
AUD in Million
2012
Current Ratio Current Assets 43175
Current
Liabilities 35228
1.23
Quick Ratio Quick Assets 97997
Current 35228