Understanding The Concepts

UNDERSTANDING THE CONCEPTS Page 1. Understanding The Concepts Melissa Young Lorna Johnson expect 100 2/26/2012 UNDERSTANDING THE CONCEPTS Page 2. 1. opine your be a small caper possessor. How will you contemplate your business organisation using ratios? Comp atomic number 18 it to the financial ratios that atomic number 18 most-valuable to a financial manager for a freehanded corporation. I am the manager of a residential tidy up service. The name of the business is called Melissas Home Cleaning. We specialize in cleaning the interior of the home, much(prenominal) as kitchen, bathrooms, bedrooms, dens or family rooms, recreation rooms, livingrooms, and finished basements. Our go provided lop from dusting, sweeping, mopping, running the dishwasher, cleaning appliances, countertops, sinks, vacuuming, doing laundry, cleaning tubs and toilets, ironing and reprieve clothes, wash windows, light fixtures and ceiling fans, and emptying the tr ash cans. Our unions assets atomic number 18 cash, inventory, accounts receivable, building, article of furniture and fixtures. My liabilities atomic number 18 notes and accounts payable, contingent liabilities. The do assets are about $65,000, and my total liabilities are about $18,000. My total candor is $47,000. This gives my company a 72% equity ratio.

This ratio is important to companies because it is a full indicator of leverage used by a company. 2. beg off the advantages and disadvantages of debt financing and why a organization would choose to way out stocks rather than bonds to vex fund s. One advantage of debt financing is th! at it allows the founders of the company to maintain come across and proprietorship of the company. The owner of the company does not have to resolution to anyone, such as; investors or partners. The owner of the company is the single one who views to make all of the decisions. The owner will, also, own, all, the profits that are made. Another advantage is that, all, interest the owner pays on a loan is tax deductible. Interest is, usually, ground on...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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