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detailed balance sheet for a hypothetical cement factory
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Creating a detailed balance sheet for a cement factory requires making realistic assumptions about the financial figures. Below is an example of a detailed balance sheet for a hypothetical cement factory, including common line items you might find in such an industry. The figures provided are illustrative and based on industry averages and estimated data.
ABC Cement Factory
Balance Sheet As of December 31, 2023
Assets
- Current Assets
- Cash and Cash Equivalents: $15,000,000
- Accounts Receivable: $20,000,000
- Inventory:
- Raw Materials: $8,000,000
- Work-in-Progress: $5,000,000
- Finished Goods: $12,000,000
- Spare Parts & Consumables: $4,000,000
- Prepaid Expenses: $1,500,000
- Other Current Assets: $2,500,000
Total Current Assets: $68,000,000
- Non-Current Assets
- Property, Plant, and Equipment (PPE):
- Land: $30,000,000
- Buildings: $50,000,000
- Plant & Machinery: $200,000,000
- Vehicles: $10,000,000
- Office Equipment: $3,000,000
- Accumulated Depreciation: -$50,000,000
- Intangible Assets:
- Goodwill: $5,000,000
- Patents & Trademarks: $2,000,000
- Investments in Subsidiaries/Affiliates: $8,000,000
- Long-Term Investments: $7,000,000
- Deferred Tax Assets: $4,000,000
- Other Non-Current Assets: $2,000,000
Total Non-Current Assets: $271,000,000
- Property, Plant, and Equipment (PPE):
Total Assets: $339,000,000
Liabilities and Equity
- Current Liabilities
- Accounts Payable: $25,000,000
- Short-Term Debt: $10,000,000
- Current Portion of Long-Term Debt: $7,000,000
- Accrued Liabilities: $3,500,000
- Taxes Payable: $2,000,000
- Other Current Liabilities: $1,500,000
Total Current Liabilities: $49,000,000
- Non-Current Liabilities
- Long-Term Debt: $100,000,000
- Deferred Tax Liabilities: $5,000,000
- Provision for Environmental Liabilities: $3,000,000
- Pension and Post-Retirement Obligations: $4,000,000
- Other Non-Current Liabilities: $2,000,000
Total Non-Current Liabilities: $114,000,000
Total Liabilities: $163,000,000
- Equity
- Share Capital: $50,000,000
- Retained Earnings: $100,000,000
- Other Reserves: $20,000,000
- Non-Controlling Interest: $6,000,000
Total Equity: $176,000,000
Total Liabilities and Equity: $339,000,000
Additional Notes:
- Cash and Cash Equivalents include readily available funds and highly liquid investments with a maturity of three months or less.
- Accounts Receivable represent amounts owed by customers for cement and other products sold on credit.
- Inventory includes the cost of raw materials like limestone, gypsum, and other additives; work-in-progress for partially completed cement; and finished goods ready for sale.
- Property, Plant, and Equipment (PPE) are the most significant assets, including the cement plant, machinery, and other infrastructure essential for production.
- Goodwill reflects the premium paid over the fair value of assets when acquiring other businesses.
- Long-Term Debt mainly consists of bank loans and bonds issued to finance plant operations and expansion.
- Deferred Tax Liabilities arise due to differences in accounting and tax depreciation.
- Equity represents the owners’ investment in the business plus retained earnings from profitable operations.
This balance sheet gives a comprehensive view of a cement factory’s financial position, helping stakeholders understand its assets, liabilities, and equity at a specific point in time.
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