Acc 557 Assignment 1

906 Words4 Pages
Assignment 1: Application of Financial Statement Lekicia Williams-Gist Dr. Peter McDaniel Financial Accounting – Acc 557 Monday, February 27, 2012 1. Explain how the use of the balance sheet may be applied to your everyday life. A balance sheet summarizes an organization or individual's assets, equity and liabilities at a specific point in time. I chose Target’s balance sheet to examine. Target’s balance sheet may be applied to my everyday life by showing me how the company is doing business wise and if my purchases are making a contribution towards their overall profit. The balance sheet can be used to help me see the ways that I have made financial decisions in my life. Their balance sheet shows that over the last 3 years their total assets have dropped by $401,000 which means that they have been selling a lot of merchandise. Their liabilities have dropped by $240,000 which means that they are not in as much debt. I do like the fact that from year 2009 to 2010 their liabilities dropped by $1,208,000 and their current assets went up by $936,000. Their tangible assets are very interesting because they were up by $1,775,000 from 2009 to 2011. A balance sheet can be applied to everyday life by allowing a person to get a quick handle on the financial strengths and capabilities of their lives. If someone keeps a balance sheet they are able see what steps they need to take to better their financial position. The balance sheet will allow you to see if you are overspending on necessities versus impulse buying. The balance sheet can help somebody decide if they really need the item that they want to purchase. By keeping a balance sheet, someone is able to determine if too much spending has happened. A balance sheet can show if somebody is financially in trouble or if they are barely getting by. If a balance sheet is kept, the net equity is able

More about Acc 557 Assignment 1

Open Document