1. Please provide a brief description of a balance sheet. What information can o
ID: 2722244 • Letter: 1
Question
1. Please provide a brief description of a balance sheet. What information can one get from the balance sheet? Please find a recent balance sheet from a public company and comment on how the company finances its assets.
2. Please provide a brief description of an income statement. Please find the income statements of two companies in the same industry and compare their financial performance.
3. If you take out a $300,000, 30 -year mortgage with an annual interest rate of 5.25%, what will be your monthly payment? If the interest rate goes down to 5%, what will be your monthly payments?
4. If your monthly rent is $850 per month payable on the first day of the month, what is the present value of your rent for this year, assuming today is the New Year’s day and the interest rate is 5%?
5. Suppose you will need to have $15,000 in the bank three years from today. Your local bank offers a three-year CD that pays 2.5% per year with semi-annual compounding. How much money do you need to put in the bank today so that you can have $15,000 in three years?
6. You need a new car and you want to pay off the loan in three years. Your budgeted monthly payment is $300. Will a car loan of $30,000 break your budget, assuming 5% annual interest? Please show your calculations.
Explanation / Answer
Answer:1 Balance Sheet: It is a statement of the assets, liabilities, and capital of a business or other organization at a particular point in time, detailing the balance of income and expenditure over the preceding period.
The purpose of the balance sheet, sometimes called the statement of financial position, is to report a company’s financial position on a particular date. Unlike the income statement, which is a change statement reporting events that occurred during a period of time, the balance sheet presents an organized array of assets, liabilities, and shareholders’ equity at a point in time. It is a freeze frame or snapshot of financial position at the end of a particular day marking the end of an accounting period.
a company finances through Debt, Bonds and Taking loan and issue common stock ,etc.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.