Balance Sheet Analysis

Abstract Time has come to analyze the Superiors proportionateness sheet. To complete our abbreviation we leave behind be looking at the company offset sheet in detail. I will be addressing this memorandum to our chief pecuniary officer and focusing on the working uppercase, received remnant, short-run debt and long-term debt of the Superior Living, Inc. In addition, this memo will cerebrate with a bulleted summary including any concerns that the CFO has voiced regarding these peculiar(prenominal) atomic number 18as. ? MEMO To: CFO From: Jane Antonovsky, VP of finance visualise: 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 determine 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 three divisions presented on our balance sheet. The working capital for all three historic period is positive; however, at that place was a slight shine from year 2002 to 2003.

2001 keep down authoritative Assets = $73,700 center stream Liabilities = $34,200 Working Capital for year 2001 = $73,700 - $34,200 = $39,500 2002 Total rate of flow Assets = $79,200 Total current 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 proportionali! ty law dictates that we need to river basin the current assets by the current liabilities. We excessively know that typically a current ratio falling higher than 1.5 indicates acceptable ratio, while below that figure is non a good ratio for the company. However, it is important to note that in certain divisions, there are other ratios, such as 1 or even a bit lower, that are acceptable. For our company, we have assumed that we lack to see a ratio of 1.5 or higher. Here is the...If you command to get a replete(p) essay, order it on our website: OrderCustomPaper.com

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