person owns. Including Liabilities Liabilities are debts or amounts of money that are owed to others by an individual or a business. Owner’s Equity or Net Worth A person’s or business’ assets‚ after all liabilities are deducted‚ is known as owner’s equity or net worth Balance Sheet Equations The balance sheet equation can be expressed in two ways: 1. To determine owner’s equity: Assets – Liabilities = Owner’s Equity 2. To determine total assets: Assets = Liabilities + Owner’s Equity Preparing
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assets 4. Long-term liabilities Solution 3-18 1. Acid-test ratio = Quick assets ÷ Current liabilities =1.20 Quick assets = Current assets - Inventories Quick assets = Current assets - $840‚000 Current assets ÷ Current liabilities =2.25 Current assets - $840‚000 ÷ Current liabilities =1.20 $840‚000 ÷ Current liabilities = 1.05 Current liabilities = $800‚000 Current assets ÷ $800‚000 = 2.25 Current assets = $1‚800‚000 2. Debt to equity ratio = Total liabilities ÷ Shareholders’ equity
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Ratio (unaudited) 2009 Ratio (unaudited) 2008 Ratio (audited) 2009 Ratio (audited) Current Ratio Current Ratio Current Ratio Current Ratio $130‚026 Assets $8‚380 Liabilities 15.52 to 1 $128‚867 Assets $23‚807 Liabilities 5.41 to 1 $130‚026 Assets $8‚380 Liabilities 15.52 to 1 $128‚867 Assets $ 23‚807 Liabilities 5.37 to 1 Quick Ratio Quick Ratio Quick Ratio Quick Ratio $41‚851 $37‚666 $79‚517 / $8‚380 9.49 to 1 $22‚995 $59‚787 $82‚782 / $23‚807 3.48
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Gentle Touch Creations-Business Plan Gentle Touch Creations is a start-up business specializing in hand-made herbal products created by Joanne Lovejoy‚ the company founder. These products include herbal therapy packs‚ soaps‚ Saint-John’s-wort oil‚ balsam eye packs‚ salves‚ moisturizers‚ herbal bath bags‚ and bath powder. All Gentle Touch Creations are made from herbs that are either garden grown or gathered in local fields or wooded areas when they are at their peak of maturity and the concentration
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1. Current Ratio = Current Assets / Current Liabilities Edison = 12‚800 / 3‚600 = 3.56 Stagg = 13‚800 / 3‚600 = 3.83 Thornton = 13‚800 / 3‚600 = 3.83 Quick Ratio = Quick Assets / Current Liabilities Edison = 11‚000 / 3‚600 = 3.05:1 Stagg = 10‚000 / 3‚600 = 2.78:1 Thornton
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Toyota Motor Financing Activities Debt to Equity (Total Liabilities / Total Equity) [pic] This ratio measures the financial leverage of a company by indicating what proportion of debt and equity a company is using to finance its assets. A lower number suggests there is both a lower risk involved for creditors and strong‚ long-term‚ financial security for a company. Based on the debt ratio of Toyota‚ as of 2009‚ the debt ratio is much higher than of other financial year. The year to year
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are the lack of previous financial years. The concluding remarks specify that the profitability ratios are profitable and Let it Snow has potential to be invested in. The liquidity ratios show that Let it snow is capable of meeting its short term liabilities with appropriate liquidity requirements and allows creditors to provide funding. The solvency ratios show that Let it Snow can repay its long term debt and is able to support itself financially. If you need further information do not hesitate
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------------------------------------------------- $10‚688 | ------------------------------------------------- $9‚870 | | | | Liabilities and Stockholders’ Equity | | | Current liabilities | $2‚584 | $2‚612 | Long-term liabilities | 1‚079 | 973 | Stockholders’ equity | ------------------------------------------------- 7‚025 | ------------------------------------------------- 6‚285 | Total liabilities and stockholders’ equity | ------------------------------------------------- $10‚688 | -------------------------------------------------
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ASSETS 2‚005‚482 100 1‚767‚168 100 1‚089‚473 100 EQUITY AND LIABILITIES CAPITAL AND RESERVES Share capital 61‚576 3.07 61‚576 3.48 61‚576 5.65 Reserves 534‚202 26.64 429‚959 24.33 342‚819 31.47 595‚778 29.7 491‚535 27.81 404‚395 37.12 LIABILITIES NON-CURRENT LIABILITIES Retirement benefits - obligation 3‚922 0.19 17‚519 0.99 8‚939 0.82
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1 Halliburton is a world-leading provider of energy industry products and services. The company serves the oil and gas industry by locating hydrocarbons and managing geological data‚ drilling and formation evaluation‚ well construction and completion‚ and optimizing oil field production. Halliburton consists of two divisions: Drilling & Evaluation and Completion & Production. As of December 31‚ 2011‚ these two divisions accounted for approximately 25.0 billion dollars in revenue. Halliburton has
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