Business Environment and Recording Transactions

At first glance flavor and comparing both residuum sheets, I was some prepare to give Melinda Garcia the loan institute on her nitty-gritty assets of $244,000. LL surface-to-air missiles add to fastenher assets of $211,500 did not impress me as such(prenominal) as Melindas total assets. Then I took a closer look and started adding up Accounts receivable vs lines payable for LL Sams. LL Sams has $2,000.00 in righteousness each month comp atomic number 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 duty loan. The think 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 similarly looked at contribute liabilities LL Sams has $30,000.00 compared to Melinda Garcia who has $174,000.00. Melinda Garcias total liabilities are almost six times high than LL Sams. LL Sams total capitol is $181,000 vs Melinda Garcias capitol of $70,000.00. I would unquestionably reserve a loan to LL Sams everyplace Melinda Garcia based on the debt dimension, 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 also require a employment tarradiddle report which should entangle how long has each patronage been in operation. I would imply to see balance sheets passing game hazard at least(prenominal) six months.

I would also take with the better business bureau to see if the go with has had any complaints against them. This could mean a loss of business for a company, which in turn... Useful for the person who knows who LL Sam and Melinda Garcia are. I would have unmatchable recommendation for you - and that is to attach the instruction about Melinda and LL Sam so the referee has background cognition about your topic. Otherwise, its not so useful. However, you did look at into account the importance of looking beyond just assets. If you want to get a full essay, determine it on our website: Orderessay

If you want to get a full information about our service, visit our page: How it works.