Company's economics - Essay Example

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Company's economics

ntory 60000 Purchases 200000 Advertising Expenses 20000 Rent 7200 Telephone 1200 Utilities 4800 Payroll 112000 Loan-1 (336x12) 4032 Bal C/d 1392 Loan-2 (8000+4160) 12160 Common Stock A/C Interest A/C Bal c/d 60000 Cash 60000 Cash 4160 Profit/Loss A/c 4160 Loan A/C Pickup Truck A/c Cash 4032 Cash 32000 Cash 2000 Cash 8000 Pickup Truck 10000 Loan 10000 Bal c/d 12000 Bal C/d 29968 Display Equipment A/C Debtors A/C Cash 6000 Bal C/d 6000 Sales 60000 Balc/d 60000 Rototiller A/c Rent A/C Cash 400 Bal c/d 400 Cash 7200 Profit/Loss A/c 7200 Cash Register A/C Telephone Expense A/C Cash 3600 Cash 1200 Profit/Loss A/C 1200 Inventory A/C Utilities A/C Cash 60000 Cost of Sales 240000 Cash 4800 Profit/Loss A/C 4800 Cash 200000 Bal c/d 20000 Payroll A/C Sales A/C Cash 112400 Profit/Loss A/C 112400 Cash 340000 Profit/Loss A/c 400000 Debtors 60000 Advertising Expense Cash 20000 Profit/Loss A/C 20000 THE GARDEN PLACE INCOME STATEMENT FOR THE YEAR ENDED MARCH 31 2007 $ $ Sales 400,000 Less: ...
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Summary

By taking accounting and financing ratios into account, we can observe clearly that company B is performing much better than company A. The state of liquidity is excellent in company B where the current ratio is 6.132 in the year 2010, and it increased in 2011. …
Author : cpagac
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