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    Financial Gap Calculation

    Uploaded by

    Roberto F Chedid Filho

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Financial Gap Calculation

    Uploaded by

    Roberto F Chedid Filho
    14 views1 page

    Original Title

    financialgap

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    © © All Rights Reserved

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    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    14 views1 page

    Financial Gap Calculation

    Uploaded by

    Roberto F Chedid Filho

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    Financial Gap Calculation

    % of % of
    Sales* Sales*
    Financial
    Cash Notes Payable
    Gap
    Accounts Receivable Accounts Payable

    Inventory Accruals

    Total Current Assets Total Current Liabilities

    Equipment Long-Term Liabilities

    Land/Building Total Liabilities

    Total Fixed Assets Net Worth


    (old Net Worth* = 286,000)
    Total Liabilities &
    Total Assets
    Net Worth

    Derivation Definition
    SOLVENCY Measures solvency:
    Current Ratio the company’s ability to pay its bills.
    Current Assets
    Current Liabilities

    LIQUIDITY Measures liquidity:


    Quick Ratio Cash + Accts. Rec. the company’s ability to generate cash to
    (or acid test ratio)
    Current Liabilities pay bills without relying on the sale of
    inventories.

    LEVERAGE Measures the company’s ability yo


    Debt-to-Net Worth Total Liabilities withstand adversity:
    Net Worth shows the riskiness of the company

    copyright 2008 Business Resource Services

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