StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Business Memorandum - Assignment Example

Cite this document
Summary
This paper, Business Memorandum, highlights that Liquidity ratios are of most importance to short-term creditors since liquidity ratios measure the ability of the firm to meet its short-term obligations and pay off its short-term debts when they are due…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER94.1% of users find it useful
Business Memorandum
Read Text Preview

Extract of sample "Business Memorandum"

The paper "Users and the Types of Ratios They Would Be Interested in" is an outstanding example of an assignment on finance and accounting. Thank you for allowing us the opportunity to work with your company. As requested we evaluated the liquidity, profitability, and solvency ratios and what they reveal about the company’s financial position. From our analysis on the financial data used we have reached the following conclusion: 1. The current liquidity ratio is 5.987 and the quick ratio is 5.

316, which means the company is able to meet its short-term debts and obligations comfortably. 2. The common stockholders’ equity ratio on the selected financial data is 7.045, which means the company is having much success in making profits on the stockholder’s equity. 3. From the selected financial data, the debt to total assets ratio is 0.159, which means that 15.9% of the company is financed by debt while the rest of it is financed using equity. Liquidity ratios are of most importance to short term creditors since liquidity ratios measure the ability of the firm to meet its short-term obligations and pay off its short term debts when they are due (Bull, 2007).

Solvency ratios are of particular interest to long-term creditors and shareholders since they are interested in the long-term success of the business. This is because the long-term creditors and shareholders are interested in whether the company will service their debt and pay the interest accrued plus the principal in the future (Bull, 2007). According to Bull (2007), Profitability ratios are valuable financial statements to the investors of a company since they are interested in the returns on their investments.

Profitability ratios are also relevant to the company managers since it shows the company’s performance and productivity (Bull, 2007). The data collected from the selected financial data reveal a highly positive outlook at the company’s position and performance. The liquidity ratios are high meaning the immediate future of the company is secure, and its day to operations will continue. The profitability ratios are encouraging meaning the company is running an efficient and profitable business.

From the solvency ratios, the long-term survival of the company is almost assured since most

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(Business Memorandum Assignment Example | Topics and Well Written Essays - 250 words, n.d.)
Business Memorandum Assignment Example | Topics and Well Written Essays - 250 words. https://studentshare.org/business/1774822-ratio-analysis-memo-accounting-coursework
(Business Memorandum Assignment Example | Topics and Well Written Essays - 250 Words)
Business Memorandum Assignment Example | Topics and Well Written Essays - 250 Words. https://studentshare.org/business/1774822-ratio-analysis-memo-accounting-coursework.
“Business Memorandum Assignment Example | Topics and Well Written Essays - 250 Words”. https://studentshare.org/business/1774822-ratio-analysis-memo-accounting-coursework.
  • Cited: 0 times

CHECK THESE SAMPLES OF Business Memorandum

Accounting Issue Using Accounting Standards Codification

The period in which such transaction has occurred, the income statement of a business entity or statement of activities for not-for-profit entity (NFP) for current and prior periods should report the result of operation of component along with the gain or loss recognized in discontinued operations.... In a period in which the component of entity which has been disposed of or classified as held for sale, the income statement of the business entity or statement of activities of not-for-profit (NFP) entity should have the result of operation of component and gain or loss incurred in discontinued operations....
4 Pages (1000 words) Essay

Casino Management

Business Memorandum Casino employees Management Re: ID checks Attn.... I know that some of you will say, business is business, but we are talking about the reputation of the casino here.... I know that as a local business owner and a member of the town council, you are aware of the importance of casinos to our economy....
2 Pages (500 words) Essay

BUSINESS MEMORANDUM ASSIGNMENT

4) The writer Business Memorandum ASSIGNMENT MEMORANDUM 04 01 To Ms.... Securities and Exchange Commission (1998), SEC Disclosure documents must be presented in plain English.... Companies are encouraged to use simple English in order for investors and the public to easily review and… In addition, plain English disclosures will help protect investors with the federal securities laws....
2 Pages (500 words) Essay

Cathys Clothing case study

hile taking financial considerations in implementing the Cathy's Clothing Case Study Business Memorandum Memorandum The New England Regional Manager Coastal District Manager for Cathy's Classic StoreDate: 10/12/2011Re: Bonus provisions to managers in the Coastal DistrictFollowing my agreement with the New Haven and Boston Stores' managers to compensate them on performance grounds with bonuses; I prefer to inform you that the deal is due this month of May.... I consider such differences and reward any store that spends strategically and sparingly on their daily business operations....
2 Pages (500 words) Essay

Operations Management course. Memo

Business Memorandum Bruce Chan, Managing Director Cc: Jung Lee, Production Manager Sarah Brooke, Head of Sales DepartmentRef: ‘CX Technology' by Ketan Bhole, Jordan Lee, Eileen Lu, Idrajit Sen.... Analysis of the situationAlthough CX Technologies has been able to maintain its position in the market, growth has plateaued and with the incoming recession, business is set to go down further.... xpand the branch in Taiwan, since it offers more lucrative opportunities for doing business in Asia....
2 Pages (500 words) Case Study

The Ways of Evaluating Teachers

It is also discussing on certain impacts that the involvement of the parent in school offers to the academic scores of the student.... Teachers are also very… These are well prepared in the Microsoft Access documents that are attached.... It will use the performance of the students as either escalating or dropping and ascertain the possible From the performance, it can be noted that teacher Smith is rated good in all the years both in first grade as well as second grade....
2 Pages (500 words) Essay

A Review of Magna Carta College Oxfords Website

For example, the website highlights its content through simple words such as, learning resources, of school Business Memorandum To From A review of Magna Carta College Oxford's Website A reviewof the Magna Carta's website shows an effective use of most of the strategies for reader-centered communication....
1 Pages (250 words) Essay

Incorporating Graphics Into the Justification Report

Most justification reports are designed in the form of a Business Memorandum. ... Most justification reports are designed in the form of a Business Memorandum.... Currently, incorporating graphics into justification report has become almost a necessity.... A justification report is mostly used when there is a need to persuade, for instance,… It is paramount to understand the format of your justification report before adding any graphic....
1 Pages (250 words) Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us