Financial Acct

Financial and Managerial Accounting M1-21 Applying the Accounting Equation and Computing financing Proportions Use the accounting equation to compute the missing pecuniary amounts (a), (b), (c). Which of these companies is much possessor financed? Which of these companies is more than non-owner financed? Discuss why the attribute of the owner financing might differ across these tierce businesses. ($ millions) Assets = Liabilities + justice Hewlett Packard….$74,708 = $36,962 + (a) public Mills ……$18,227 = $ (b) + $4,175 General Motors…..$ (c) = $365,057 + $6,814 M1-21 Team Answer: 1A) Hewlett Packard the Equity is $37,746 (37,746 + 36,962 = 74,708) 1B) General Mills the Liabilities atomic number 18 $14,052 (14,502 + 4,175 = 18,227) 1C) General Motors the Assets atomic number 18 $371,871(365,057 + 6,814 = 371,871) 1D) piece looking over the three businesses it appears that Hewlett Packard is the most owner financed. The owner financed portion is 50.5247095%. 1E) While looking over the three businesses it appears that General Motors is the most non-owner financed. The owner financed portion is 1.8323558%.

1F) The reason the owner financed is different betwixt these companies is because the business and grocery store verticals they are in can consider financing rates, assets needed, liabilities, and much more. For example: Hewlett Packard is in the technology patience where the risks are higher and dislodge is constant. To keep up with the market demand, financing is needed to stay consistent with current technology and create new technology as well. So, owners would need more equity since the risks are higher and when risks are higher the cost to borrow money is higher. General Mills and General Motors are in more of a constant market where change happens, but at a much slower rate. Also, they are in a market where a portion of on that point portfolio fall more in the line of needs more than wants. People need... If you want to get a full essay, request it on our website: Orderessay

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