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Answer:The balance sheet shows the assets (resources) that the company is using, and how these assets have been funded with equity (shareholders funds) and liabilities (loans, etc).

The balance sheet is always at some date, for example, end of year.

The assets can tell us:

- how much cash does the company hold

- does the company sell on account?

- how much inventory at year end?

- how much machinery/buildings/etc does the company have

- are those relatively old or new? (depending on the cumulative depreciation)

- etcetera

The liabilities and equity section tells us:

- the current liabilities: how much needs to be paid within 12 months

- long term liabilities: how much needs to (re)paid in the long run

- how much have the investors paid for their shares

- how much of profits are retained in the company (not paid as dividend)

- how much potential (future) losses the company can absorb with their equity

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