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Central, IL | Yes, your operating debt from the previous year will go under current liabilities IF you still have a balance on it. Also show in current liab. the accrued interest on intermediate and long term liab. Dont forget income tax due. My lenders also make me show what portion of intermediate and long term liabilites that are due in the next 12 months in current liablilites.
A balance sheet is a snapshot of you financial position on a given date. I always take that picture on December 31. A couple of days into the new year a lot of money changes hands and can change the numbers.
Also, I have current and adjusted amount columns. Lets say 10 years ago you bought 100 acres for $1000. That same ground would sell today for $3000 an acre. I put the $100,000 in the adjusted column and the $300,000 goes in the current column. The $200,000 difference is an artificial gain that does not measure your true net worth gain. If you do it this way you can see from year to year if your business is really growing from hard work and good decisions or if it is growing off of "asset appriciation and market place gain". It paints a better picture for you and your lenders from year to year. | |
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Creating a balance sheet
