March 18th meeting planning – balance sheets

Planning for this week’s class is tricky and I am being pulled in two different directions. I really want to teach balance sheets and the ratios that go with balance sheets. And planning for our next activity. (statement of financial position)

The balance sheet formula is Assets = Liabilities + Equity. This is important to understand first.

What are assets? Anything that you own. Why are there current assets and fixed assets and what are some examples of these? Current assets are cash, receivables and anything that you own that is going to be sold in the upcoming year. (some might call receivables debtors.) These assets are cash or will be turned into cash within the upcoming year. Fixed assets are the assets that you are going to keep such as property, vehicles or equipment.  

What are liabilities? Anything that you owe. There are also current liabilities. These are any debts that the business needs to pay within the upcoming year. So, current assets are things like accounts payable (creditors) or anything else that needs to be paid. Long term liabilities are things that will be paid off in more than one year, like mortgages and loans. 

What is equity? Equity is the value of the business. It is the difference between their assets and liabilities. Which makes sense! This shows the company’s financial health.

Working Capital = current assets – current liabilities – this shows a company’s short term financial health and use of money. We will take a look at Disney and Comcast’s balance sheet and see if there is a positive or negative working capital and discuss what that means.

After we discuss this and know our way around a balance sheet – we are going to split up and work on some things to get ready for our next event. 

Nate will work on the feedback from Cloe and I about the project video. 

Eitan will work on a budget and one of the gantt charts on the computer for the next 2 events – tennis tournament and cooking together.

Oliver will work on setting goals and the gantt chart for 1 of the events for the organization. SMART goals for the next 2 events.