Solely on the basis of these relief sheets, to which entity would you be more satisfactory lending m 1y? Explain fully, citing specific items such as the accounting equation and amounts from the difference sheets. In addition to balance sheet data, what other information would you require? Be specific.
To fasten-go glance at the balance sheet one powerfulness jump and give the loan to Melinda Garcia because of the large amount that she has for her full(a) assets. I took my time and reviewed each balance sheet. Although while at first glance it does seem that Garcia will get the loan, one must take the time and dissect the remaining balance sheet. Garcias account payable is only a mere $6,000 compared to that of L.L. Sams who is salaried twice that much. Still that alone isnt enough to convince me to impressive Garcia the loan.
I would lend the money to L.L. Sams Company. My reasonings for lending money to L.L. Sams is simple. While L.L. Sams accounts payable is twice the amount of Garcias I looked at the accounts receivable. Garcia is barely screaky by receiving only $7,000. That is just $1,000 more than she is paying out. non much room for error or to stretch. L.L. Sams has accounts receivable at $14,000 making a difference of $2,000 between his accounts payable and receivable.
non much more than Garcia, yet his total liabilities are dramatically less than Melinda Garcias. L.L. Sams total capitol is phenomenally higher than Melinda Garcia. L. L. Sams capitol is $181,500 compared to Melinda Garcias $70,000. The total debt to balance method works in L.L. Sams favor and I would elevated that follow the loan.
One thing I would require each company to furnish me with is verification of how long their business has been operating,
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