Balance Sheet Analysis

Abstract
Time has come to analyze the Superiors proportionateness sheet. To complete our analysis 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, current balance, short-term debt and long-term debt of the Superior Living, Inc. In addition, this memo will conclude with a bulleted summary including any concerns that the CFO has voiced regarding these particular atomic number 18as.
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MEMO
To: CFO
From: Jane Antonovsky, VP of finance
Date: 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 figure 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 three divisions presented on our balance sheet. The working capital for all three years is positive; however, at that place was a slight decrease from year 2002 to 2003.




2001
keep down authoritative Assets = $73,700
Total Current Liabilities = $34,200
Working Capital for year 2001 = $73,700 - $34,200 = $39,500
2002
Total Current Assets = $79,200
Total Current 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:
The current ratio law dictates that we need to divide the current assets by the current liabilities. We excessively know that typically a current ratio falling higher than 1.5 indicates acceptable ratio, while below that figure is non a good ratio for the company. However, it is important to note that in certain divisions, there are other ratios, such as 1 or even a bit lower, that are acceptable. For our company, we have assumed that we want to see a ratio of 1.5 or higher. Here is the...If you want to get a replete(p) essay, order it on our website: Orderessay



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