Memo to Blair

Memorandum To:Blair From:Sam Date: [ 1/11/2013 ] Re:Understanding Walt Disney channel low gear Annual cross Hello Blair. As you know I excite been winning an accounting class and have drop dead well-known(prenominal) with some of the terms that you see on your ratio didactics from The Walt Disney Company. I understand that you are not whole the old(prenominal) with the terms; therefore I will stifle them put through for you so that you flowerpot better understand them. First off, the relaxation stable gear gives you an instant picture of your financial strength. That performer that if something was to go wrong within the connection, would your finances be upstanding complete to cope with a potential loss. On the balance sheet you will see assets and liabilities. Assets are the things of which you own and have honor such as cash. It is somewhat life collateral. When you groom protrude a bring, the loan company asks you to name collateral. to begin w ith you can unsex the coin in which you are enquire for, they necessity to be sure that if you were to stop paying on your loan that you have enough items of value that they can do it and ticktack to pay off your debt. In a vocation it is serious called assets. Liabilities are debts which the cable owes. These are typically money or resources that the business used to get started and is paying sticker overtime.

near you will see stockholders equity. This is monomania in the business. There are two ways to support willpower in a business and they are outwardly and internally. outwardly ownership means that one has contributed money or resources into the business and gained ownership. When one makes external contribut! ions and are made owners carry commonalty stocks or preferred stocks. Now with internal ownership which is called kept up(p) earnings. Retained earnings are self-generated by the business. When the company makes a profit it retains them. This is good for the stockholders because they get the money back that they have invested plus the profits called dividends! The income statement...If you want to get a full essay, order it on our website: OrderEssay.net

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