6/7/23, 12:57 AM South University
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Balance Sheet and Cash Flow Report
As in any business, three types of reports—the income statement, the balance sheet, and the cash �ow
—help evaluate an HCO's �nancial status. A balance sheet contains information about the assets and
the liabilities of a business. It is from this information that we can discover the owners' equity or
ownership value of the business. The balance sheet is a snapshot of a business's position at a givenpoint in time, and it follows the formula, Assets = Liabilities + Equity. The right side of the balance sheet
gives the business's mix of debt and equity �nancing, which is called the business' capital structure.
Capital structure is a key �nancing decision discussed later in the course, and the balance sheet is
critical to understanding that topic. The cash �ow report shows whether the organization has the cash
to cover its expenses or will need to tap a line of credit. That is, the total amount of money moving (or
�owing) into and out of a business. Cash �ow liquidity re�ects how quickly a company can repayoutstanding debt using generated cash funds.
You now have been introduced to the cash �ow of an organization. Review the following material to
gain more insight to each of these topics before you begin you assignments.
Resources:
The Balance sheet (media/week2/SU_MHC6305_BalanceSheetAnalysis_Transcript.pdf?
_&d2lSessionVal=z5OKu45gwlgrO6aJYJKMzqeW4&ou=101647)
Of�ceToDo. (2014). Calculating dept ratio in Excel [Video]. Available from
https://www.youtube.com/watch?v=qDeTl6hos08
eHow. (2009). Business calculations & accounting: Calculating working capital [Video]. Available from
