Model Balance Sheet

Following is a model balance sheet. Apart from the item of deferred charges, the assets are grouped into two classes, fixed and current, and the items in each class are arranged in the order of their relative liquidity, or the ease with which they can be turned into cash, beginning with the least liquid. Not all concerns follow this order, some preferring to arrange the assets in sequence according to the relative convertibility into cash through sale or exchange. The latter plan is particularly desirable when winding up the concern's affairs or otherwise liquidating its property. A balance sheet which shows primarily cash or liquidation values is termed a "statement of affairs."

BALANCE SHEET
Assets

Fixed:
Plant ......................................................   $........
Real Estate and Buildings .................   .........
Machinery ..............................................   .........
Other ......................................................   .........
Permanent Investment .......................   .........
Good-will, Patents, etc .......................   .........
Total Fixed Assets .........................................   $.......

Current :
Inventories .........................................   $.......
Bills Receivable..................................   ........
Accounts Receivable.........................   ........
Cash ....................................................   ........
Total Current Assets.....................................   ........
Deferred Charges, etc..................................   ........
Total Assets..................................................   $......

Liabilities

Fixed:
Capital Stock .............................................   $........
Bonds Outstanding...................................   $........
Total Fixed Liabilities ...............................   $........
Reserves.....................................................   $........

Current :
Notes Payable ...........................................   $........
Accounts Payable......................................   $........
Total Current Liabilities..........................................   ........
Deferred Liabilities.................................................   ........
Surplus......................................................................   ........
Total Liabilities.......................................................   $........