Understanding The Concepts

UNDERSTANDING THE CONCEPTS Page 1. Understanding The Concepts Melissa Young Lorna Johnson throw 100 2/26/2012 UNDERSTANDING THE CONCEPTS Page 2. 1. opine your be a small caper possessor. How will you probe your business organisation using ratios? Comp be it to the financial ratios that argon Copernican to a financial manager for a long corporation. I am the manager of a residential straighten service. The name of the business is called Melissas Home Cleaning. We specialize in cleanup the interior of the home, much(prenominal) as kitchen, bathrooms, bedrooms, dens or family rooms, recreation rooms, livingrooms, and finished basements. Our serve provided lop from dusting, sweeping, mopping, running the dishwasher, cleaning appliances, countertops, sinks, vacuuming, doing laundry, cleaning tubs and toilets, ironing and intermission clothes, wash windows, light fixtures and ceiling fans, and emptying the trash cans. Our unions assets arg on cash, inventory, accounts receivable, building, article of furniture and fixtures. My liabilities are notes and accounts payable, contingent liabilities. The do assets are about $65,000, and my total liabilities are about $18,000. My total integrity 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 revert funds. One advantage of debt financing is that it al lows the founders of the company to maintain! influence and proprietorship of the company. The owner of the company does not have to decide to anyone, such as; investors or partners. The owner of the company is the moreover one who engenders 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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