ACC 317 Module 5 Project 1
Project One Analysis Paper
Southern New Hampshire University
ACC 317: Intermediate Accounting
, Analysis
In preparing the financial statements for the company Batter Up, a Ledger Accounts
Sheet, Income Statement, and Balance Sheet was completed to examine their financial health and
performance. Batter Up’s current financial stance shows on their income statement made a total
of $22,500 in sales revenue, $12,966 of that went towards the costs of those goods sold, and total
operating expenses were $8,166.58. This left Batter Up with a Net Income of $1367.42 before
tax. The balance sheet shows that Batter Up has total of $13,554 in assets, a total of $12,186.58
liabilities, and $1,367.42 in equity.
Balance Sheet Structure
The Balance Sheet, also known as the statement of financial position, displays what a
company owns, what is owes, and the amount invested by shareholders within an accounting
period (Fernando, 2025). All current and non-current assets are equal to liabilities and equity on
the balance sheet. Likewise, a company's debits (displayed on the left-hand side of the balance
sheet) must also equal their credits (displayed on the right-hand side). Assets = Liabilities +
Shareholders Equity. This arrangement on the balance sheet makes it easy to examine all claims
that are documented are matching. In Batter Up’s balance sheet, notice that their $13,554 in
assets are equal to the total of their liabilities and equity of $13,554 ($12,186.58 + $1,367.42 =
$13,554).
Variances Between Assets and Liabilities
If assets are equal to liabilities and shareholder equity, how are they different? The term
current assets on the balance sheet refers to all company-owned assets that can be converted to
cash within one year. This includes cash, accounts receivable, prepaid liabilities, stock inventory,
and marketable securities. Valuing a company’s current assets is important because it can
determine a company’s short-term liquidity and ability to pay its short-term obligations (Hayes,
2024). Liabilities, on the other hand, are an obligation to responsibility due to an act due to a past
Project One Analysis Paper
Southern New Hampshire University
ACC 317: Intermediate Accounting
, Analysis
In preparing the financial statements for the company Batter Up, a Ledger Accounts
Sheet, Income Statement, and Balance Sheet was completed to examine their financial health and
performance. Batter Up’s current financial stance shows on their income statement made a total
of $22,500 in sales revenue, $12,966 of that went towards the costs of those goods sold, and total
operating expenses were $8,166.58. This left Batter Up with a Net Income of $1367.42 before
tax. The balance sheet shows that Batter Up has total of $13,554 in assets, a total of $12,186.58
liabilities, and $1,367.42 in equity.
Balance Sheet Structure
The Balance Sheet, also known as the statement of financial position, displays what a
company owns, what is owes, and the amount invested by shareholders within an accounting
period (Fernando, 2025). All current and non-current assets are equal to liabilities and equity on
the balance sheet. Likewise, a company's debits (displayed on the left-hand side of the balance
sheet) must also equal their credits (displayed on the right-hand side). Assets = Liabilities +
Shareholders Equity. This arrangement on the balance sheet makes it easy to examine all claims
that are documented are matching. In Batter Up’s balance sheet, notice that their $13,554 in
assets are equal to the total of their liabilities and equity of $13,554 ($12,186.58 + $1,367.42 =
$13,554).
Variances Between Assets and Liabilities
If assets are equal to liabilities and shareholder equity, how are they different? The term
current assets on the balance sheet refers to all company-owned assets that can be converted to
cash within one year. This includes cash, accounts receivable, prepaid liabilities, stock inventory,
and marketable securities. Valuing a company’s current assets is important because it can
determine a company’s short-term liquidity and ability to pay its short-term obligations (Hayes,
2024). Liabilities, on the other hand, are an obligation to responsibility due to an act due to a past
