Understanding The Concepts

fellow feeling THE CONCEPTS Page 1. apprehension The Concepts Melissa Young Lorna Johnson wear 100 2/26/2012 UNDERSTANDING THE CONCEPTS Page 2. 1. Imagine your be a small line possessor. How will you analyze your descent organisation using ratios? match it to the financial ratios that are essential to a financial autobus for a large corporation. I am the manager of a residential house make clean service. The make reveal of the business is called Melissas Home Cleaning. We qualify in cleaning the interior of the home, much(prenominal) as kitchen, bathrooms, bedrooms, dens or family rooms, entertainment rooms, livingrooms, and finished basements. Our services provided prune from dusting, sweeping, mopping, running the dish t superstar dproprietor, cleaning appliances, countertops, sinks, vacuuming, doing laundry, cleaning tubs and toilets, ironing and hanging clothes, wash windows, light fixtures and ceiling fans, and voidance the trash cans. Our unions assets are cash, inventory, accounts receivable, building, term of furniture and fixtures. My liabilities are notes and accounts payable, depending on(p) liabilities. The do assets are approximately $65,000, and my total liabilities are about $18,000. My total right is $47,000. This gives my ships community a 72% equity ratio.

This ratio is important to companies because it is a full indicator of supplement used by a company. 2. beg off the advantages and disadvantages of debt backing and why a organization would choose to way out stocks rather than bonds to generate funds. one advantage of debt financing is that it allows the founders of the company to maintain control and proprietorship of the company. The owner of the company does not have to answer to anyone, much(prenominal) as; investors or partners. The owner of the company is the only one who gets to make all of the decisions. The owner will, also, own, all, the profits that are made. some other advantage is that, all, interest the owner pays on a give is tax deductible. Interest is, usually, reason on...If you want to get a full essay, order it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper