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Balance Sheet and Income Statement Commentary

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Balance Sheet and Income Statement Commentary


October 6, 2014

Brian Keltch

Balance Sheet and Income Statement Commentary

An income statement monitors the activities of the business or a particular time frame which is being reported. The activities are the products or services that are provided to the customers and the resources that are used to provide those products and services. Using an income statement allowed for business to communicate their profitability and also allows business owner to compare the current income statement earlier income statements to monitor any trends.

A balance sheet determines the net worth of the company as of the closing date on the statement and it identifies all the items which are owned by the company and the amount of the quality the owner has within the business. The net worth equals the quality of the owner and the owner use balance sheet as a way to understand how the business is funded through borrowing rather than equity. I compare balance sheet to the prior statements it can be used to determine if the financial position of the business is improving or declining.

J.B. Hunt Transport Services, Inc.

J.B. Hunt Transport Services, Inc. was founded in 1961 and has a headquarters located in Lowell, Arkansas, which provides transportation and delivery services throughout the United States, Canada, and Mexico. As of December 31, 2012, J.B. Hunt Transport transports, or arranges for the transportation of a range of freight, which includes general merchandize, specialty consumer items, appliances, forest and paper products, food and beverages, building materials, soaps and cosmetics, automotive parts, electronics, and chemicals.

According to J.B. Hunt Transport Services balance sheet for 2013, the company’s current assets total an accumulation of their cash and cash equivalents of $5,831, net receivables of $568,519, inventory of $26,248, and other current assets of $79,605 which then leaves a total current assets of $680,203. The company’s total assets are a total of their property plant and equipment which is $2,112,204 and other assets which are $26,997, and the total current assets of $680,203. The current liabilities are the accounts payable, short/current long term debt, long term debt, other liabilities, and deferred long term liability charges. The total liabilities for J.B. Hunt are $1,806,952 which consists of the long term debt, the deferred long term liability charges, other liabilities, and the current liabilities. Stockholders’ equity is presented when the ownership is presented with all the relevant information. The balance sheet states the common


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