If the accounts in this trial balance were listed without regard to the groups in which they belong, it would merely show that the ledger balances. In its present form, it gives at a glance much valuable information. Total expenses and expenses of each class are readily ascertained, sales are shown, and expenses can be compared with sales. With the exception that it does not show the changes in the account of the inventory, this trial balance exhibits the condition of the business. Supposing that an inventory is taken, the following statements are quickly prepared. BALANCE SHEET _Assets_ Cash $264.20 Bank 4,728.50 Accounts Receivable 6,270.00 Inventory (Feb. 1) 7,995.00 Real Estate 10,000.00 Furniture and Fixtures 5,000.00 _Liabilities_ Mortgage Payable $3,000.00 Bills Payable 5,000.00 Accounts Payable 6,120.00 Capital Stock 20,000.00 Surplus 137.70 --------- ---------- 34,257.70 34,257.70 TRADING STATEMENT Inventory (Jan. 1) 7,860.00 Purchases 5,500.00 In-Freight 96.20 ---------- 13,456.20 Less Inventory (Feb. 1) 7,995.00 ---------- 5,461.20 Sales 7,219.00 Gross Profit 1,757.80 --------- --------- 7,219.00 7,219.00 --------- ---------- PROFIT AND LOSS STATEMENT Gross Profit $1,757.80 Advertising $475.00 Salesmen's Salaries 300.00 Traveling Expenses 189.70 General Expense 74.00 Interest and Discount 22.60 Building Maintenance 37.00 Taxes and Insurance 42.00 Salaries 525.00 Net Profits 137.70 --------- --------- 1,780.40 1,780.40 --------- ---------