Understanding The Concepts

UNDERSTANDING THE CONCEPTS Page 1. Understanding The Concepts Melissa Young Lorna Johnson make up 100 2/26/2012 UNDERSTANDING THE CONCEPTS Page 2. 1. cipher your be a small caper possessor. How will you see your business organisation using ratios? Comp be it to the financial ratios that ar key to a financial manager for a handsome corporation. I am the manager of a residential clean service. The name of the business is called Melissas Home Cleaning. We specialize in clean the interior of the home, much(prenominal) as kitchen, bathrooms, bedrooms, dens or family rooms, recreation rooms, livingrooms, and finished basements. Our operate 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 unions assets be cash, invento ry, 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 right 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 try funds. One advantage of debt financing is that it allows the founders of t he company to maintain dominate and proprie! torship of the company. The owner of the company does not have to behave to anyone, such as; investors or partners. The owner of the company is the alto bindher 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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