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14
Financial statements
and ratios
The man in the picture is thinking about
different types of financial statements.
Which ones are you familiar with?
Can you explain what they are used for?
Here are two typical examples of the disclosures required under U.S. law.
In the U.K. one would be called a
Balance Sheet
, and the other a
Profit and Loss Statement
.
In the U.S. they have other names. Which is which?
1
Statement of Financial Position
At December 31 (In millions)
2006
2005
Assets
Cash and equivalents
$ 13,485
$ 18,278
Investment securities
67,833
61,890
Current receivables
7,290
6,870
Inventories
3,444
3,281
Financing receivables
121,189
113,871
Insurance receivables
2,560
2,187
Other receivables
985
1,009
Property, plant and equipment – net
46,005
44,875
Investments
18,320
18,320
Intangible assets
19,836
17,998
All other assets
65,871
62,755
Total assets
$ 366,818
$ 351,334
Liabilities and equity
Short-term borrowings
$ 95,531
92,736
Accounts payable
12,894
10,209
Progress collections
2,890
3,897
Dividends payable
1,155
1,102
All other current costs and expenses accrued
9,598
8,293
Long-term borrowings
75,728
70,354
Insurance liabilities, reserves and annuity benefits
85,389
84,283
All other liabilities
37,487
33,763
Deferred income taxes
12,736
14,198
Total Liabilities
333,408
318,835
Balance Sheet, Statement
of Cash Flows, Statement
of Earnings …
Statement of Financial
Position, Notes, Annual
Report, Budget …
Market
Capitalization,
Discounted Cash
Flows …
Management Accounts,
Investments, Statement of
Shareholders’ Equity …
2
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