Question

Q Search for news or symbols Balance Sheet All numbers in thousands Breakdown 1/31/2019 1/31/2018 1/31/2017 Assets Current Assets Cash Cash And Cash Equivale... 409,251 277,445 385,010 Short Term Investments 120,000 30,000 Total Cash 409,251 397,445 415,010 Net Receivables 136,168 99,719 88,631 Inventory 1,214,329 1,096,424 943,975

Explain the balance sheet above or how to present it?

Answer 1

At the beginning of the balance sheet, There are assets that include current assets and non-current assets and non-current assets. Current assets are increasing. In non-current assets, the company has purchased property and plant and created a good reputation in the market. Goodwill has increased along with intangible assets. The company has invested more and this will result in future cash inflows as interest in the company.

Now, liabilities have current, non-current liability and shareholders funds. In Current liability accounts payable has increased, it means the company has not paid its creditors or company is purchasing more on the account. Tax liability has reduced to 0 and deferred revenue is increased that will be realizable in the future. Thus, current liabilities are also increasing. Non-current liabilities are also increasing, the company is going to have more tax liability in the future .

Common stock has reduced, the company has sold its shares and taken long term debt instead. The company is retaining more, so there is a possibility that the company will diversify or expand or will pay a bonus in the future to its shareholders.