Your understanding of the financial statement helps when computing financial metrics. For instance, when we calculate the return on assets, we know that we take the after-tax operating income from the income statement. We retrieve the average total assets from the balance sheet. Below, I am providing a brief balance sheet. Assets = Liabilities + Owner's EquityASSETSCurrent Assets  Cash  Accounts Receivables  Inventory  Prepaid ExpensesLong-Term Assets  Land  Building  Machinery  EquipmentLIABILITIESCurrent Liabilities  Accounts Payable  Wages and Salaries Payable  Taxes Payable  Interest PayableLong-Term Liabilities  Notes Payable  Bonds PayableOWNERS’ EQUITYBeginning BalanceNet IncomeEnding BalanceHow is the information in the brief balance sheet related to what you already know?