Xacc 291 Week 2

Submitted By cdiehl
Words: 439
Pages: 2

Organization/Development
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XACC/291
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TO: Baderman Island Resort
FROM: ACC291 Course Student
DATE: 3/2/3014
SUBJECT: Organization/Development
The reasoning for this memo is to share the income statement and the balance sheet for the Baderman Island Resort. These two particular financial documents are the result of a financial analysis that was completed to will allow you to review the financial standings of the resort.
Financial Ratios
The different financial ratios are utilized to provide the profitability and liquidity of the Baderman Island Resort. The profitability ratio provides compiled information stating the operational performance status of the company. The liquidity ratio provides the data showing the proportion of the liquid assets associated to the current liabilities of the company. This ratio can be used for an investor or a purchaser. The solvency ratio is the company’s assets viruses’ debit comparison (debit to income ratio) the amount of sellable assets. This could be used for creditors and investors. These financial ratios can be used to determine the complete financial stability of the company. Using the ratios financial institutions can determine if the company is financially able to withstand additional debit at the time the company is applying for credit. All of the ratios can be used for various reasons, such as, investors, creditors, employees, etc….. Displayed below are the 2005 financial ratio charts for Baderman Island Resort.

The financial data collected for Baderman Island Resort displays the strong and weak financial areas of the company. This data also provides the current financial stability of the company as well as, the available solvent assets, the profitability and the amount of liquefiable property with the company. The different ratios