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The Reformulating the Balance Sheet:1.All assets areeither operating or non-operating.Operating assets are used to generate sales whilenon-operatingassets aretypically excess monies that have not yet been invested inoperating assets or excess cash that will bereturned to thebondholders and stockholders at some point in thefuture.2.Typicalnon-operatingassets are excesscash or cash equivalents and investments. All other assets are typicallyoperating.3.Typicalnon-operatingliabilities arecurrent portion of long term debt, long term debt, and capitalizedlease obligations. All other liabilities including accountspayable, and accrued expenses are typically operatingliabilities.4.Investedcapital equals operatingassets minus operatingliabilities.5.Netnon-operatingassets or netliabilities equals non-operatingassets minus non-operatingliabilities.Sample BalanceSheet:Cashneeded foroperations?200?Accountspayable ?300Excesscash?600?Accruedexpenses?250Inventory?400?Currentportion of Long termdebt?150?Investmentin marketablesecurities?300?Longterm debt? 1000Plant property andEquipment? 1100?StockholdersEquity?900Totalassets? 2600?2600What are thetwo non-operatingassets??Whatdo they sum to?What are thetwo non-operatingliabilities??Whatdo they sum to?What are the threeoperating assets??Whatdo they sum to?What are the twooperating liabilities??Whatdo they sum to?Calculatethe investedcapital.?Calculatethe net non-operatingliability.Please construct abalance sheet with invested capitalonthe leftside and thesum of net non-operatingliabilities andstockholders’ equity on the other, thebalance sheet must balance.