Balance Sheet Analysis

Abstract Time has come to analyze the Superiors proportionateness sheet. To complete our compend we leave behind be looking at the company offset sheet in detail. I will be addressing this memorandum to our chief financial officer and focusing on the working uppercase, ongoing equipoise, short-term debt and long-term debt of the Superior Living, Inc. In addition, this memo will adjudicate with a bulleted summary including any concerns that the CFO has voiced regarding these finical atomic number 18as. ? MEMO To: CFO From: Jane Antonovsky, VP of finance designation: September 3, 2012 matter: Balance Sheet Analysis The balance sheet is a barb of the firms assets and liabilities at a given floor in time. (CTU Online, 2012) Below is the analysis of the current company balance sheet. Working majuscule: To omen out the working capital of the company, we have to take the current assets and subtract the current liabilities. present is the outlook for the thr ee divisions presented on our balance sheet. The working capital for all three long time is positive; however, at that place was a slight change magnitude from year 2002 to 2003.

2001 keep down authoritative Assets = $73,700 marrow original Liabilities = $34,200 Working Capital for year 2001 = $73,700 - $34,200 = $39,500 2002 Total true Assets = $79,200 Total sure Liabilities = $37,100 Working Capital for year 2002 = $79,200 - $37,100 = $42,100 2003 Total Current Assets = $83,900 Total Current Liabilities = $41,950 Working Capital for year 2003 = $83,900 - $41,950 = $41,950 Current Ratio: The current pr oportionality law dictates that we need to ! carve up the current assets by the current liabilities. We excessively know that typically a current ratio falling higher than 1.5 indicates agreeable ratio, while below that figure is non a good ratio for the company. However, it is important to note that in certain divisions, there atomic number 18 other ratios, such as 1 or plane a bit lower, that are acceptable. For our company, we have assumed that we take to see a ratio of 1.5 or higher. Here is the...If you neediness to get a replete(p) essay, order it on our website: OrderCustomPaper.com

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