Accounting Acc290

1133 words 5 pages
Allstate Insurance Financial Statement, Part II
Amanda Crombach, Tami Reischmann, Jessica Roth, Shane Vogt
April 8, 2013

Allstate Insurance Financial Statement, Part II

This paper will breifly discuss some different financial aspects of Allstate including, what some of Allstate’s assets include, how the assets are classified, what cash equivalents are, the company’s total liabilities at the end of the most recent annual reporting period as well as at the end of the provious reporting period, what information gathered in this paper that might be important to creditors, investors, and employees. The Allstate Corporation is the largest publicly held personal lines property and casualty insurer in
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Allstate’s cash and cash equivalents for 2011 are $776,000,000,000 and for 2012 they are $806,000,000,000. The definition of current liabilities given by “Investopedia” (2013) states it as a company’s debts of obligations that are due within one year. Current liabilities appear on the company’s balance sheet and include short-term debt, accounts payable, accrued liabilities and other debts. Basically, current liabilities are bills that are die to creditors and suppliers within a period of time. Most company’s will withdraw or cash current assets in order to pay their current liabilities. Allstate’s current liabilities at the end of its most recent annual reporting period in 2012 was 106,367,000,000. Allstate’s total liabilities at the end of the previous annual reporting period in 2011 were 106,895,000,000. Knowing Allstate’s total liabilities is important because it is important to see that a company does not have more liabilities then assets. Also showing that a company has decreased its liabilities from year to year will show creditors that the company is either paying off prior creditors or reducing costs to ensure a better financial future. It would be a red flag for a creditor if the liabilities continue to increase but assets do not. In reviewing Allstate’s financials records it is clear that