Balance Sheet Analysis

Abstract Time has come to analyze the Superiors proportionateness sheet. To complete our digest 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, legitimate residuum, short-run debt and long-term debt of the Superior Living, Inc. In addition, this memo will terminate with a bulleted summary including any concerns that the CFO has voiced regarding these special(a) atomic number 18as. ? MEMO To: CFO From: Jane Antonovsky, VP of finance determine: 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 estimate out the working capital of the company, we have to take the current assets and subtract the current liabilities. present is the outlook for th e three divisions presented on our balance sheet. The working capital for all three days is positive; however, at that place was a slight settle from year 2002 to 2003.

2001 keep down authoritative Assets = $73,700 totality ongoing Liabilities = $34,200 Working Capital for year 2001 = $73,700 - $34,200 = $39,500 2002 Total present-day(prenominal) Assets = $79,200 Total online 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: Th e current proportion law dictates that we n! eed to split up 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 make up a bit lower, that are acceptable. For our company, we have assumed that we insufficiency 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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