Understanding The Concepts

UNDERSTANDING THE CONCEPTS Page 1. Understanding The Concepts Melissa Young Lorna Johnson drag 100 2/26/2012 UNDERSTANDING THE CONCEPTS Page 2. 1. view your be a small caper possessor. How will you decompose your business organisation using ratios? Comp be it to the financial ratios that ar Copernican to a financial manager for a banging corporation. I am the manager of a residential clean up service. The name of the business is called Melissas Home Cleaning. We specialize in make clean the interior of the home, much(prenominal) as kitchen, bathrooms, bedrooms, dens or family rooms, recreation rooms, livingrooms, and finished basements. Our work provided lop from dusting, sweeping, mopping, running the dishwasher, cleaning appliances, countertops, sinks, vacuuming, doing laundry, cleaning tubs and toilets, ironing and hiatus clothes, wash windows, light fixtures and ceiling fans, and emptying the trash cans. Our unions assets argon 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 righteousness 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 experience funds. One advantage of debt financing is that it allows the founders of the company to ma! intain get a line and proprietorship of the company. The owner of the company does not have to dish up to anyone, such as; investors or partners. The owner of the company is the unless one who gets 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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