GREENWOOD TRANSPORT Assets

=
Non-Current Assets
+ Advanced + Wages Truck + Off equ.

Liabilities + Equities

Current Assets
Cash + STSec +

=
=

Short-term or Current + Long-term or Non-current + Ownersequity Liabilities Liabilities

Accounts + Taxes Payable Payable + Share capital + Net income

Off + Ppaid + Ppaid + Acc Supplies insurance Rent Receiv

+ 11800+ +

5000 + 200 +1200+ 1500+ ............+ + + .... + ...+ + 3000 +... +

20000 + 500 . + ..

500+

300+ ... + ..+ ...+ + + + . + . 50 + ...+ + +. ...+ . + . 100 + ...+ + +. . .+ .. + .

+ .+ . + + + ..

2000 + . . + ...+ ...+ + +. 200 + . + .

+ 1000+ + ...+ ...+

1000 +. ... + + . .

+ .+ . + ...+ ...+ + .. +. . + .+ . + .

300

+ .

100 +. + +. + + .

+ .+ . + .+ ..

500 + +.. + . + .

+ 50 + . + .+ ... + + +. + . + . + ..+ + .+ ... + + +. . + . + . + 11050+ 5000 + 150 + 1100 + 1000 + 2000 + 200 + 19700 + 500

= = = = = = = = = = = = =

+ 200 + .+ + + + 40000 + . + ... + ...... + . + .+ .. + +. ..+ . + + .. + ... .+ + ... + +. ..+ ... + 50 + ... .+ . + .. + +. ..+ .. + + ... + .. . + + +. .+ + + ... + 3500 300 100 1800

+ ..

.+ .. + +. .+ . . + + + ..+. ..+ .+ + .+. .-

+ + + . + + +. .+ . +.. + + . + . + + +. .+ + + . + + + . + 300 100 500 50 150

+ + . + .+ .+ + .+. .+ + + 150 + .+ ..+ + +. . + 250 + 150

+ .+ ..+ + 40000 + . + 300

GREENWOOD TRANSPORT

Greenwood Transport plc Balance sheet at June 30, year 1

CURRENT ASSETS Cash Short-term securities Office supplies Prepaid insurance Prepaid rent Accounts receivable Advanced wages FIXED ASSETS Truck Office equipment Total 19,700 500 20,200 40,700 Total 11,050 5,000 150 1,100 1,000 2,000 200 20,500 CURRENT LIABILITIES Accounts payable Taxes payable 250 150 400

SHAREHOLDERSEQUITY Share capital Net income 40,000 300 40,300

40,700

Greenwood Transport plc Income Statement June year 1

Sales revenues Wages Depreciation Consumption of office supplies Rent Insurance expense Fuel costs OPERATING INCOME Financial revenue INCOME BEFORE TAXES Corporate taxes INCOME AFTER TAXES 3,500 1,800 300 100 500 100 300 400 50 450 150 300

A TALE OF THREE COMPANIES

A = 49 B = 30 C= 4 D = 25 E = 61 F = 14 G = 112 H = 44 I = 74 J=3 K = 16 L = 43 M = 12 N=4 P = 58

FORMATS OF FINANCIAL STATEMENTS

Company

Amazon.com (USA) Baltika Breweries (Russia) Fiat (Italy) Jazztel (UK/Spain) Jet Airways (India) Thales (France) Company

Balance sheet Classification Single-step (S) Multiple-step (M) S S S M M S

Presentation Increasing (I) Decreasing (D) D I I N/A (1) I (2) I

Amazon.com (USA) Baltika Breweries (Russia) Fiat (Italy) Jazztel (UK/Spain) Jet Airways (India) Thales (France)

Income statement Degree of simplification Classification of Single-step (S) expenses Multiple-step (M) Nature (N) Function (F) M F M F M F M N M N M F

Comments
1. 2. Jazztel is very unusual in that assets were reported in an increasing order of liquidity, whereas the liabilities were reported in a decreasing order (current liabilities first). The balance sheet is reported with a multiple-step by term format, as it is often the case in India. In the present case, the balance sheet is balanced as assets minus current liabilities equals long-term funding (i.e., shareholders equity + long-term liabilities). This format has traditionally been found also in Chinese and Dutch balance sheets. Under this format, assets are presented according to increasing liquidity. Because of the multiple-step format, liquidity criteria are not directly applicable to liabilities