Business of Radiology 101

Balance Sheet: Liability

Liabilities are obligations to others and can include accounts payable, loan payments, mortgages, wages due, taxes soon due, and benefits or pensions due. Just like assets, liabilities are sorted by immediacy and often divided into current (those due in less than 12 months) and long-term liabilities. These items can contain clues to the financial status of the business such as the total amount of debt, and the ratio of short-term to long-term debt. Benefits, and particularly pensions, can represent a large long-term financial liability and bear scrutiny.

				Period ending:		3/30/14					(all values represent 1,000's of $)
Total Assets					$ 5,000			Total Liability & Equity					$ 5,000
	Total Current Assets			$ 330					Total Liabilities			$ 3,450
		Cash		$ 50						Current Liabilities		$ 50
		Accounts Receivable		200							Accounts Payable	30
		Inventory		80							Accrued Liabilities	20
	Total Noncurrent Assets			4,670						Long-term Liabilities		3,400
		Net book value		3,420							Equipment Loans	2,000
			Scanners & Equipment	3,000							Building Mortgage	1,400
			Buildings	820
			Accumulated depreciation	- 400					Total Equity			1,550
		Land		1,250						Dr. Hamurabi's Equity		500
										Dr. Solomon's Equity, A		250
										Dr. Solomon's Equity, B		250
										Dr. Nebakanezer's Equity		500
										Retained Earnings		50