Current assets

C. Balance sheet current and fixed assets, current and long-term liabilities, net worth... 

Current ratio Current assets/current liabilities 1.5-2.0... 

Assets Current assets Cash Savings account Checking account Certificate of deposits Other current assets Total current assets 3,000 3,000... 

Current Liabilities. Current liabilities are debts that must be paid within a year from the date of the balance sheet. They are paid from the current assets. Current liabilities include accounts payable, notes payable, accrued expenses payable, and income taxes payable. 

Assets are classified as current or fixed, and liabilities as current or long-term. Fixed assets are material items that have a relatively long life and normally include land, buildings, plant, vehicles, etc. They are held for the specific purpose of earning revenue and are not for sale in the normal course of business. Current assets include cash and those items that can be fairly easily converted into cash, such as raw-materials inventories, etc. In contrast to fixed assets, current assets are acquired for the specific purpose of conversion into cash in the normal course of business. However, what is regarded as a fixed asset by one type of company might be regarded as a current asset by another. For example, a chemical company would normally classify its vehicles as a fixed asset. However, a company whose primary business was to sell vehicles would classify them as a current asset. 

Current ratio = current assets/current liabilities... 

As shown in Table 16.3, assets for this corporation are divided into Current Assets, Investments, Property, and Other Assets. Current assets are items of economic value that could be converted to cash in less than one year, including cash and cash equivalents, marketable securities, accounts receivable, inventories, prepaid expenses, and deferred income taxes. The current assets total 4,630,000,000. Investments pertain to investments in companies in which ownership interest by U.S. Chemicals is 50% or less, but where U.S. Chemicals exercises significant influence over operating and financial policies. Property constitutes fixed assets, including land, buildings, machineiyr, equipment, and software, and is listed at its bod... 

The option premium has two constituents intrinsic value and time value. Intrinsic value equals the difference berween the strike price and the underlying assets current price. It is what the options holders would realize if they were to exercise it immediately. Say a call option on a bond futures contract has a strike price of 100 and the contract is trading at 105. A holder who exercises the option, buying the futures at 100 and selling the contract immediately at 105, earns a profit of 5 that is the options intrinsic value. A put options intrinsic value is the amount by which the current underlying assets price is below the strike. Because an option holder will exercise it only if there is a benefit to so doing, the intrinsic value will never be less than zero. Thus, if the bond future in the example were trading at 95, the intrinsic value of the call option would be zero, not —5. 

The rules for valuing current assets are very different from those for valuing fixed assets. Current assets must be valued at the lower of cost and net realizable value (the money... 

Existing level of protection the degree of occupational safety provided by countermeasures to an asset currently being utilized at an organization... 

Operating profit Working capital Other adjustments Fixed assets Current assets Current liabilities ... 

Assets are further classified as current or noncurrent (long-term) assets, separated only by the time the company thinks it will hold the asset. You can also think of this in the following way, how liquid is the asset Current assets are held for 1-year or less. These include cash, inventory, and receivables. Noncurrent or long-term assets are held longer than 1 year. Long-term fixed assets, such as plant, property, and equipment (PP E), have three common characteristics ... 

Current ratio = Current assets/Current liabilities = 22,203/ 17,839 = 1.24 times... 

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