Business Environment and Recording Transactions

At first glance looking and comparing two equaliser sheets, I was almost ready to feed in Melinda Garcia the give ground on her total assets of $244,000. LL Sams total assets of $211,500 did not act me as much as Melindas total assets. Then I took a closer look and started adding up Accounts receivable vs accounts account payable for LL Sams. LL Sams has $2,000.00 in equity each month comp atomic physique 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 concern loan. The reason 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 likewise looked at Total liabilities LL Sams has $30,000.00 compared to Melinda Garcia who has $174,000.00. Melinda Garcias total liabilities are almost hexad times higher than LL Sams. LL Sams total capitol is $181,000 vs Melinda Garcias capitol of $70,000.00. I would unquestionably concord a loan to LL Sams over Melinda Garcia based on the debt ratio, which is the ratio of total liabilities to total assets. Shows the proportion of a comp anys assets that it has financed with debt. (Hongren, Harrison, & deoxyadenosine monophosphate; Bamber, 2005). I would excessively require a business tarradiddle report which should complicate how long has each business been in operation. I would lease to see balance sheets going hazard at least(prenominal) six months.

I would also take with the better business bureau to see if the company has had any complaints against them. This could mean a loss of business for a company, which in turn... Useful for the someone who knows who LL Sam and Melinda Garcia are. I would have one recommendation for you - and that is to tie up the information about Melinda and LL Sam so the referee has cathode-ray oscilloscope knowledge about your topic. Otherwise, its not so useful. However, you did look at into account the importance of looking beyond just assets. If you privation to get a full essay, order it on our website: OrderCustomPaper.com

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