|Assets||€ x 1,000||Liabilities and Owners' Equity||€ x 1,000|
|Cash and cash equivalents||100||Short-term borrowings||50|
|Short-term financial assets||140||Accounts payable||120|
|Accounts receivables||250||Income taxes||70|
|Inventories||500||Accrued liabilities and provisions||240|
|Other current assets||10||Other current liabilities||20|
|Property, Plant, and Equipment||1,700||Corporate bonds||750|
|Patents||100||Long-term bank loans||420|
|Total Assets||3,000||Total Liabilities and Owners' Equity||?|
Quiz Balance Statement
In the above balance sheet, how much current assets does this firm have?
How does goodwill arise in a balance sheet? Goodwill...
- Is a so-called 'closing account item' that matches the assets with the liabilities.
- Grows organically over time, if e.g. your brand name appears to be more worthwhile.
- In the balance sheet of an acquiring firm only increases if it acquires another firm for premium value.
- In the balance sheet of a target firm only increases if it gets acquired by another firm for premium value
In the above balance sheet, how much owners' equity does the firm have?
- With the limited information given, I cannot tell.
Of which components does 'Owners' equity' consist?
- Nominal value of common stock plus preferred stock
- Paid-in cash by the stockholders
- Paid-in cash by the stockholders, plus accumulated retained earnings.
- Paid-in cash by the stockholders, plus accumulated retained earnings, plus reserves
What is a key difference between debt and owners' equity? Owners' equity...
- Has a higher claim priority in case of default.
- (For most companies) is cheaper than debt.
- Is not considered external financing.
- Has voting rights attached to it.