Net Assets

Posted in Finance, Accounting and Economics Terms, Total Reads: 616
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Definition: Net Assets

Net assets are generally defined as the shareholders equity in the company’s balance sheet. It is the total assets minus liabilities of the company.

For example company A has the following assets and liabilities:

ASSETS

LIABILITIES and OWNERS' EQUITY

Current Assets                      year 2010    year 2011

Current Liabilities

  Year     2010

 Year 2011

Cash

45,000

40,000

Long-Term Debt – 1 Yr.

12,000

11,000

Marketable Securities

65,000

60,000

Notes Payable

15,000

14,000

Accounts Receivable

85,000

70,000

Accounts Payable

13,000

12,000

Notes Receivable

45,000

40,000

Taxes Payable

11,000

10,000

Inventories

85,000

80,000

Accrued Expenses

21,000

20,000

Total Current Assets

3,25,000

2,90,000

Other Current Liabilities

10,000

9,000

Long Term Assets

 Total Current Liabilities

82,000

76,000

Land

85,000

80,000

Long-Term Liabilities

Buildings

1,00,000

90,000

Notes Payable

30,000

27,000

Machinery

30,000

25,000

Bonds Payable

60,000

52,000

- Accumulated Depreciation

(4,000)

(3,500)

Total Long Term liabilities

90,000

79,000

Net Tangible Assets

2,11,000

1,91,500

 

                 

Net Assets for the year 2010 = 3,64,000 

Net assets for the year 2011 = 3,26, 500

 

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