Question

The Balance Sheet for CVS Health

Review your company’s balance sheet and please respond to the following 3 questions:

1) Examine your company’s current, long-term, and intangible assets. Discuss the more significant ones for your company. Discuss any observable trends over recent fiscal years.

2) What were the company's primary liabilities as displayed on the balance sheet for the most recent fiscal year? Comment on the trend in total liabilities, both current and long-term.

3) Notes to the financial statements: What more do you learn about company assets and liabilities from these details?

Answer 1

current assets :

1. these assets indicates what is the liquidity position of the cmpany
2. these assets indicates the working capital movement
3. more and more times your working capital is rotatimg the more and more profit business is earning

Long term assets

1. these are popularly known as fixed assets or plant property and equipments
2. these are the heart of business
3. without these assests you cannot be able to imagine the business at all
4. as per indian accounting standards ( old ACCOUNTING STANDARDS) there are 3AS on long term assets AS10, AS 13,As 28
5. these assets are to be valued in such a way that it the value such assets cannot be more than present value of future cashflows expected to arise from the asset

Appropriate depreciation method should be choosed which should represent how the business is consuming the benifits if the asset to earn the revenue

A view on current assets and long term assets of CVS health

Particulars	2017	2016	changes in %
Current assets	$31,229,000	$31,042,000	0.64%(increase)
Fixed Assets	$10,292,000	$10,175,000( depreciation decducted)	1.11% (increase)
good will	$38,451,000	$38,249,000	0.52%(increase)
other intangible	$13,630,000	$13,511,000	0.87%(increase)

1. fixed assets have been increased there may be an addition
2. goodwill have been increased the company should have been revalued its goodwill or it should have been gone for acquistion of susidary
3. other intangibles are also increased there should be acqusition or generation of new intangibles ( patents or copy rights )​

Current Liabilities and Long term liabilities

particulars	2017	2016	change (%)
current liabilities	30,648,000	$26,250,000	16.75%
long term liabilities	$22,181,000	$25,615,000	d3ecrease

current liabilitiees has been increased by 16.75% it lead to fall in current ratio from 1.18(2016) to 1.01(2017) defect in short term solvency slightly lock in working capital

long term liabilities has been decreased there should be repayment in long term debts.