Classified balance sheet is a financial statements that involve assets and liabilities in the company. This is the balance sheets that shows if the company earn profits, losses or break even. In the big company they conduct a fiscal year inventory as well as fix assets inventory to make sure the figures that are input in the balance sheets are correct and accurate. In your balance sheets you need
. to record all the current assets such as Cash, cash receivable , inventory and supplies you add everything and that is the total current assets. Next to that it is Investments that includes, property, equipments and buildings you need to consider that buildings and equipment having depreciation because of the life span. To get the depreciation cost the projected life span divided the numbers of years. Or depending on the company projected depreciation percentage. Then next to that write the other assets. In the next column of the balance sheets you need to write all the liabilities , current liabilities includes notes payable, accounts payable , taxes payable, then long term liabilities total all the liabilities minus the total assets, the result is to determine the company loss or gain a profits.
