Thesis: Financial Statements for Johnson Arabia LLC

Sample Thesis Paper

This section shall present a detailed discussion on the company’s financials for the past few years. For the purpose of analysis, a ratio analysis was carried out which incorporated the current ratio, the debt to total asset ratio, the debt to equity ratio, assets to equity ratio and net cash flow to asset ratio. This analysis shall be carried by making use of the company’s balance sheets.

Balance sheet is the primary source of information for the stakeholders of the company. Basically it is the summary of the organization’s performance over a period of time. Balance sheet is one of the most important financial statements of a business or institution which shows the assets, debts and owner’s investment in the business as of a specific date. Assets are divided in to two major categories which are the current assets and the fixed assets. Usually assets are categorized according to their liquidity, means that how soon they can be converted into cash. As far as the debt part is concerned it shows the liability that the organization has. Debts are recorded in the balance sheet according to how soon they would be paid. In short we can say that the balance sheet show two sides of the business’s financial situation number one what the business owns and number two what the business owes.

What the business owns is called the assets and what the company owes is called the liabilities and the value of the shareholders equity. Both the assets and the liabilities and equity should be equal to balance the book. The importance of balance sheet could be analyzed with the fact that the investors plan their investment after having a look at the balance sheet of that particular company.

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