Understanding The Concepts

arrest THE CONCEPTS Page 1. instinct The Concepts Melissa Young Lorna Johnson redress 100 2/26/2012 UNDERSTANDING THE CONCEPTS Page 2. 1. Imagine your be a small period of play possessor. How will you analyze your art organisation using ratios? par it to the financial ratios that are all-important(prenominal) to a financial four-in-hand for a large corporation. I am the manager of a residential house cleaning service. The call up of the business is called Melissas Home Cleaning. We tell apart in cleaning the upcountry of the home, much(prenominal) as kitchen, bathrooms, bedrooms, dens or family rooms, divagation rooms, livingrooms, and finished basements. Our services provided clip from dusting, sweeping, mopping, running the dish wash drawinger, cleaning appliances, countertops, sinks, vacuuming, doing laundry, cleaning tubs and toilets, ironing and hanging clothes, wash windows, light fixtures and ceiling fans, and change the trash cans. Our unions assets are cash, inventory, accounts receivable, building, clause of furniture and fixtures. My liabilities are notes and accounts payable, possible liabilities. The do assets are closely $65,000, and my total liabilities are approximately $18,000. My total rectitude is $47,000. This gives my confederation a 72% equity ratio.

This ratio is important to companies because it is a full indicator of leverage used by a confederation. 2. beg off the advantages and disadvantages of debt funding and why a transcription would choose to way by stocks rather than bonds to generate funds. peerless advantage of debt financing is that it allows the founders of the company to maintain control and proprietary of the company. The proprietor of the company does not have to answer to any genius, such as; investors or partners. The possessor of the company is the only one who gets to make all of the decisions. The possessor will, also, own, all, the profits that are made. another(prenominal) advantage is that, all, interest the owner pays on a lend is tax deductible. Interest is, usually, fuzee on...If you want to get a full essay, order it on our website: Ordercustompaper.com

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