Balance Sheet Analysis

Abstract Time has come to analyze the Superiors proportionateness sheet. To complete our analytic thinking 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, rate of flow rest, short debt and long-term debt of the Superior Living, Inc. In addition, this memo will shut down with a bulleted summary including any concerns that the CFO has voiced regarding these detail atomic number 18as. ? MEMO To: CFO From: Jane Antonovsky, VP of finance catch: 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 regard 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 years is positive; however, at that place was a slight diminish from year 2002 to 2003.

2001 keep down authoritative Assets = $73,700 perfect legitimate Liabilities = $34,200 Working Capital for year 2001 = $73,700 - $34,200 = $39,500 2002 Total watercourse Assets = $79,200 Total up-to-the-minute 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 Ra tio: The current proportion law dictates t! hat we need to tell the current assets by the current liabilities. We excessively know that typically a current ratio falling higher than 1.5 indicates refreshing ratio, while below that figure is non a good ratio for the company. However, it is important to note that in certain divisions, there argon other ratios, such as 1 or correct a bit lower, that are acceptable. For our company, we have assumed that we hope to see a ratio of 1.5 or higher. Here is the...If you exigency to get a replete(p) essay, order it on our website: OrderCustomPaper.com

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