Cash & Equivalent : Cash is the most important asset
for any organization. Any company can purchase assets, pay liability, invest in
any project by cash. In this balance sheet in the year 2005 the company have a huge amount of cash from
other years. That refers a good condition of the company.
Net Accounts Receivable:
Accounts receivable is created by sells on credit. More accounts
receivable means more sell. In 2001 the company have a big balance of accounts
receivable but the cash balance is not so good. But in the year 2005 the
company have a good balance in both accounts receivable and cash. So we can say
this year the company sold more in cash and on credit.
Inventory : High balance of inventory indicate
that the company have produced more or they have more raw materials. In the
year 2005 inventory is much good from other years.
Total Current Assets : In which year the total current
assets are high that means the company gain a better position from other years.
according to the balance sheet the company have a great balance in 2005.
Capital Assets: Capital Asset is what a company
invested. In the year 2005 the company invested more from other years.
Total Assets: Good balance of total asset
indicates that the company is running well. In the year 2005 the best position
of the company have a good position from others.
Accounts
Payable: A rich balance of accounts payable indicates that a bad condition
of a company. more Accounts payable means more liabilities. In the year 2005
Accounts payable is so much high that means the company have much liabilities.
Total Liabilities: Having a low balance of total
liabilities is a symbol of good condition. In this balance sheet the company
have a low balance in the year 2002.
Owner’s Equity: In the year 2005 the owner has so
much equity from the other years.
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