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However, equity in the company cannot be used as collateral because its value fluctuates. The banker would have to consider that if the company is insolvent enough to require the bank's acquisition of collateral, retained earnings would not likely have any value remaining.
3) the current ratio is calculated as the current assets/current liabilities. The current assets are as follows:
Cash 15,000
Accounts Receivable 5,000
Total Current Assets 20,000
The current liabilities are as follows:
Accounts Payable 2,500
Customer Deposits 3,000
So therefore, the current ratio is as follows:
5500 = 4.18
This is a great current ratio....
The ratio is a measure of a firm's liquidity, its ability to meet its pending debts. This company has a limited debt load, consisting of accounts payable and customer deposits. The current assets include accounts receivable and cash. With $15,000 in cash, this firm is very liquid at present.
4) the current ratio would matter to my banker because it indicates the company's ability to repay debts. The ratio only concerns debts that are due within one year. On the asset side, only assets that are readily convertible to cash are considered. The banker wants to be sure that the company is in a position to generate sufficient cash to meet the loan obligations. This makes the current ratio a key measure for the banker to consider.
Business Plan for a Financial Divorce Software Business Plan Divorce Software Business Plan relating to the Sales of a new Financial Divorce Software. Business Plan relating to the Sales of a new Financial Divorce Software F F1 F2 F3 G1 G1(a) G1(b) G1(c) Business Identification Keys to Success Company Summary Industry History Legal Form of Ownership Location and Facilities Management Structure Products and Service Market Analysis Target Market Industry Analysis Competitive Analysis Market Strategy Ps of Marketing Price List Selling Strategy Sales Forecast Implementation Strategy Overall Strategy Implementation Control Plan Financial Statements and Projections Revenue and Cost Estimate Forecasted Profit and Loss Statement Forecasted Balance Sheet Financial
[2: www.med.govt.nz/business/business.../structure-and-dynamics-2011.... ] The primary research of the Auckland market presents the following sectors for consideration for the new venture: The demographics in the target market include: college going and married women with children who either are working mothers or stay-at-home mothers; this makes the age group anywhere between 25 to 55; the overall annual income of the household is more than AUS $100,000; the property owned by the target individual
Business Summaries This chapter addresses the reasons that one should study business and businesses to begin with. The authors make the point that they do not intend for this to be a narrow study that just focuses on particular examples of successive and failed businesses, although it will include case studies too. But the major point of studying business, the authors write, is to provide a larger sense of what is needed
While at J.C. Penney, Walton read extensively about retailing theory and principles. He also had the insight to consider the importance of proximity to his merchandise suppliers and he took full advantage of his ability to turn around merchandise so fast that he could leverage his short-term debts to suppliers into capital for investment and growth. 6. Who is in charge of the company now? Michael Terry Duke, became the Chief Executive
Business Plan The mission of the business will be to provide quality gourmet food and utmost convenience and choice to traveling airline passengers. While giving complete control to the airline passenger by allowing them to choose their meal and determine the cost without the inconvenience and time crunch inherent in airport food establishments or scarce in-flight food offerings. The management team will consists of several food service industry specialists and two travel
2009 2008 ART 8.54 8.84 ACP 42.74 41.27 Iturnover 15.13 14.23 Inventory Age 24.12 25.65 Comments: Ford shows unfavorable activity ratios, which is indicative of the fact that the company is using its assets efficiently to meet financial requirements. All measures, except ART improved over time (from 2008 to 2009). 2009 2008 Debt/Equity 2.04 1.62 Debt/Assets 0.40 0.36 TIE -2.35 2.25 Comments: Ford uses debt heavily to finance the growth of the company. Overall the company is servicing the debt well and is stable over time, even though the loss in 2009 has affected the capital