Business Environment and Recording Transactions

At first glance looking and comparing two equaliser sheets, I was almost ready to have got Melinda Garcia the contribute ground on her total assets of $244,000. LL Sams total assets of $211,500 did not light upon 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 enactment 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 melody 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 as well looked at Total liabilities LL Sams has $30,000.00 compared to Melind a Garcia who has $174,000.00. Melinda Garcias total liabilities are almost 6 times higher than LL Sams. LL Sams total capitol is $181,000 vs Melinda Garcias capitol of $70,000.00. I would unquestionably reserve a loan to LL Sams over Melinda Garcia based on the debt balance, 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 in any case require a business tarradiddle report which should entangle how long has each business been in operation. I would look at to see balance sheets going hazard at to the lowest degree 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 person who know s who LL Sam and Melinda Garcia are. I would! have one recommendation for you - and that is to subjoin the information about Melinda and LL Sam so the referee has mise en scene 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 wishing to get a full essay, order it on our website: BestEssayCheap.com

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