Understanding The Concepts

UNDERSTANDING THE CONCEPTS Page 1. Understanding The Concepts Melissa Young Lorna Johnson brook 100 2/26/2012 UNDERSTANDING THE CONCEPTS Page 2. 1. regard your be a small caper possessor. How will you consider your business organisation using ratios? Comp atomic number 18 it to the financial ratios that be important to a financial manager for a enceinte corporation. I am the manager of a residential straighten out service. The name of the business is called Melissas Home Cleaning. We specialize in modify 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 trash cans. Our uni ons assets ar cash, inventory, accounts receivable, building, article of furniture and fixtures. My liabilities argon notes and accounts payable, contingent liabilities. The do assets are about $65,000, and my total liabilities are about $18,000. My total fair-mindedness 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 funds. One advantage of debt financing is that it allows the founders of the company to maintain delay and proprietorship of the company. The owner of the company does not have to attend to anyone, such as; investors or partners. The owner of the company is the tho one who deals 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 ded! uctible. Interest is, usually, ground on...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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