tutorial - balance sheet

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Zalatan & Chapman: LINKS Tutorial #3 Page 1 Revised January/2009  LINKS Tutorial #3: Balance Sheets Katrina A. Zalatan & Randall G. Chapman In LINKS, your receiv e several financial reports after every simulation round. This tutorial introduces you to the Balance Sheet. Since balance sheets are derived from P&L statements and inventory reports, we recommend that you complete LINKS Tutorials #1 and #2 before you start t his one. This tutorial is organized into four parts: Starts On Page: PART 1: Overview 2 PART 2: Assets 3 Exercise: Question: Topic: Page: 1 Assets definition 3 1 2 Asset size 3 3 Inventory assets 3 PART 3: Liabilities and Equities 5 Exercise: Question: Topic: Page: 1 Liabilities 6 2 2 Equities 6 3 & 4 Profit utilization 6 5 Balance sheet relationships 6 PART 4: Links to the Performance Evaluation Report 8 Exercise: Question: Topic: Page: 1 Return on assets (ROA) defined 8 3 2 ROA verses Marketable Securities 8 3 Firm ROA verses Industry Average 8 4 1 Net asset turnover defined 9 2 Net asset turnover calculated 9

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