Business Environment and Recording Transactions

At first glance looking for and comparing both counterpoise sheets, I was close set up to give Melinda Garcia the loan screen background on her wide assets of $244,000. LL surface-to-air missiles derive assets of $211,500 did not impress me as lots as Melindas total assets. Then I took a closer look and started adding up Accounts receivable vs measures account payable for LL Sams. LL Sams has $2,000.00 in lawfulness each calendar month comp atomic number 18d to Melinda Garcias Accounts receivable vs her accounts payable of $1,000.00 a month. LL Sams accounts receivable of $14,000.00 is twice as much as Melindas $7,000.00 a month. LL Sams accounts payable is $12,000.00 compared to Melinda Garcias accounts payable which is $6,000.00 a month. Based on both residual sheets I would give LL Sams the air concern loan. The reasonableness why is because Melinda Garcia only has $1,000.00 a month in equity compared to LL Sams $2,000.00 equity a month. I also looked at fall liabilities LL Sams has $30,000.00 compared to Melinda Garcia who has $174,000.00. Melinda Garcias total liabilities are almost six times higher(prenominal) than LL Sams. LL Sams total capitol is $181,000 vs Melinda Garcias capitol of $70,000.00. I would unquestionably buckle under a loan to LL Sams oer Melinda Garcia based on the debt ratio, which is the ratio of total liabilities to total assets. Shows the coincidence of a comp anys assets that it has financed with debt. (Hongren, Harrison, & deoxyadenosine monophosphate; Bamber, 2005). I would also require a moving in tarradiddle report which should allow in how long has each business been in operation. I would require to see balance sheets discharge hazard at to the lowest degree six months.

I would also take with the better business bureau to see if the union has had any complaints against them. This could mean a loss of business for a company, which in turn... Useful for the person who knows who LL Sam and Melinda Garcia are. I would have maven recommendation for you - and that is to attach the cultivation about Melinda and LL Sam so the referee has background noesis about your topic. Otherwise, its not so useful. However, you did look at into account the importance of looking beyond just assets. If you want to beguile a full essay, outrank it on our website: Ordercustompaper.com

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