Business Environment and Recording Transactions

At first glance looking and comparing both(prenominal) equaliser sheets, I was almost ready to work Melinda Garcia the contribute ground on her total assets of $244,000. LL Sams total assets of $211,500 did not inculcate me as much as Melindas total assets. Then I took a closer look and started adding up Accounts receivable vs accounts collectible for LL Sams. LL Sams has $2,000.00 in equity each calendar month comp atomic be 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 origin 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 alike looked at Total liabilities LL Sams has $30,000.00 compared to Me linda Garcia who has $174,000.00. Melinda Garcias total liabilities are almost cardinal times higher than LL Sams. LL Sams total capitol is $181,000 vs Melinda Garcias capitol of $70,000.00. I would unquestionably pay a loan to LL Sams over Melinda Garcia based on the debt proportionality, 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 addition require a business tarradiddle report which should hold how long has each business been in operation. I would get hold of 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 psyche who knows who LL Sam and Melinda Garcia are. I would have one recommendation for you - and that is to tie the information about Melinda and LL Sam so the referee has place setting 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 destiny to get a full essay, order it on our website: BestEssayCheap.com

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