MEMORANDUM To: CEO, COMPANY G RATIOS THAT MEASURE ABILITY TO PAY LIABILITIES CURRENT RATIO When evaluating the ability of a company to pay short-term obligations, the Current Ratio is one ratio that can be used. To calculate the Current Ratio the Current Assets are divided by Current Liabilities. The Current Ratio for year 12 of Company G is 1.78. For comparison, the Current Ratio for year 11 was 1.86 and the quartile data for the industry are 3.1, 2.1 and 1.4. This information shows a trend
Words: 361 - Pages: 2
Leadership The five bases of power are: Referent, Legitimate, Reward, Expert and Coercive. Referent power is the ability or power of an individual to attract others and build loyalty. “The power derives from one person having an overall likability leading people to strongly identify with them in one form or another”. (French & Raven's, 2010) Admiration for this person may be due to a particular personality trait; this in turn, generates a chance for interpersonal influence. An example of
Words: 662 - Pages: 3
FNT1 Task1 Western Governors University FNT1 Task1 | Financial condition of Company G memo | | | Introduction: | Below is business memorandum to the CEO of Company G. Below is a chart that full meets the expectations of the task that was give. Each ratio is explained and the formulas used are listed along with the ratio finding. 1. That information is used to understand what our current trend and if it indicates a strength, weakness, no concern. Final Justification of identification
Words: 1297 - Pages: 6
Lessons from Geese 'Individual empowerment results from quality honking' Lessons from Geese provides a perfect example of the importance of team work and how it can have a profound and powerful effect on any form of personal or business endeavor. When we use these five principles in our personal and business life it will help us to foster and encourage a level of passion and energy in ourselves, as well as those who are our friends, associates or team members. It is essential to remember that
Words: 397 - Pages: 2
| Company G | Memo To: Chief Executive Officer From: CC: Date: 1/7/2013 Re: Current Financial Status Analysis Current Ratio: Measures a company’s ability to pay short-term obligations. A low current ratio is an indication that a company may not be able to cover its obligations in the short-term. In year 11, Company G’s current ratio was 1.86. In year 12, Company G’s current ratio was 1.80. The year 12 information provided by the quartile industry data for home centers shows current
Words: 1923 - Pages: 8
Current Ratio: Current ratio is a financial ratio that measures whether or not a firm has enough resources to pay its debts over the next 12 months. Formula to calculate current ratio is as follows; Current ratio = Current Assets / Current Liabilities From the results of Company G, we can find out that company G has week liquidity position. It is due to increase in current liabilities more than current assets. Current ratio is not only declining as compared to previous year but also below industrial
Words: 975 - Pages: 4
Memorandum To: CEO of Company G CC: From: Date: 3/1/2015 Re: Analysis of Company G Ratios The following is the breakdown you requested on the Company G financial statements. Current Ratio = Current Assets / Current Liabilities The current ratio is a representation of Company G’s ability to pay its short-term debts. In other words, the current ratio represents the number of times the company can pay its current liabilities by liquidating its current assets. To calculate current ratio
Words: 2650 - Pages: 11
Current Ratio: The current ratio is an indication of the company’s ability to pay its short term obligations. The formula for calculating the current ratio is Current assets ($28,065,000) divided by Current liabilities ($15,881,000). Company G has a current ratio of 1.77 for year 12. When compared to the current ratio of 1.86 for year 11 this ratio has decreased slightly. When compared to the industry data quartiles this ratio falls below the first quartile of 3.1, the second quartile of 2.1, and
Words: 2521 - Pages: 11
SUBDOMAIN 319.1 - ACCOUNTING & FINANCE SUBDOMAIN 319.2 - INFORMATION TECHNOLOGY Competency 319.1.3 Capital Budgeting Analysis - The graduate correctly applies time value of money techniques and techniques that ignore present value for capital investment decisions. Competency 319.2.1 Technology Tools - The graduate uses information technology tools for specified business purposes. Competency 319.2.5 Information Management - The graduate selects appropriate technology applications to manage information
Words: 1287 - Pages: 6
memo Comments: Dear Mr. CEO of Company G As per your request I have done an evaluation of the company G financials, comparing Fiscal year 11and Fiscal year 12. I have chosen to evaluate the financials through thirteen (13) key financial Ratios. Below, you will find all thirteen (13) Ratios along with an explanation of those ratios, an evaluation and justification of all thirteen (13) ratios as a strength, weakness or satisfactory condition, and I will compare (where possible) these ratios to
Words: 1667 - Pages: 7