STEPS

1. Compute for the Assets (Current Asset to Inventory to Cash to Fixed Asset)
2. Compute for the Equity and Total Debt
3. Compute for the Current Liabilities
4. Compute for the Liabilities and Equity (from the bottom)

FORMULAS

1. Current Asset
Net Working Capital = Current Asset – Current Liabilities
2. Inventory
Quick Asset Ratio = Current Asset – Inventory – Prepaid Expenses
Current Liabilities
Or
Quick Asset Ratio = Cash + Current Accts Receivable + Short-term Marketable Securities
Current Liabilities
*If there’s no Accounts Payable,
Inventory Turnover = Gross Margin
Inventory
3. Cash
Add all Current Assets
4. Fixed Asset
Total Asset = Current Assets + Non-Current Assets
5. Equity
Total Liabilities & Equity
Debt to Equity Ratio + 1
6. Total Debt
(Debt to Equity Ratio) (Equity)
7. Long-term Debt
Total Debt = Current Liabilities + Non-Current Liabilities
8. Trade Receivable (net)
Total Asset = Cash + Trade Receivable (net) + Inventory + Fixed Asset
9. Retained Earnings
Total Equity = Common Stock + Retained Earnings
10. Current Liabilities
Current Ratio = Current Asset
Current Liabilities
11. Accounts Payable
Current Liabilities – Notes Payable
12. Long-term Payable
Total Liabilities and Equity = Notes Payable + Accounts Payable + Retained Earnings + Common
Stock + Long Term Debt