Memo to Blair

Memorandum
To:Blair
From:Sam
Date: [ 1/11/2013 ]
Re:Understanding Walt Disney channel low gear Annual Report
Hello Blair. As you know I excite been taking an accounting class and have drop dead familiar with some of the terms that you see on your ratio statement from The Walt Disney Company. I understand that you are not whole the familiar with the terms; therefore I will stifle them down for you so that you can better understand them.

First off, the quietus sheet gives you an instant picture of your financial strength. That performer that if something was to go wrong within the company, would your finances be upstanding enough to cope with a potential loss. On the balance sheet you will see assets and liabilities. Assets are the things of which you own and have value such as cash. It is somewhat life collateral. When you groom out a loan, the loan company asks you to name collateral. to begin with you can unsex the coin in which you are enquire for, they need to be sure that if you were to stop paying on your loan that you have enough items of value that they can do it and get to pay off your debt. In a vocation it is just called assets. Liabilities are debts which the business owes. These are typically money or resources that the business used to get started and is paying sticker overtime.





Next you will see stockholders equity. This is monomania in the business. There are two ways to support possession in a business and they are outwardly and internally. Externally ownership means that one has contributed money or resources into the business and gained ownership. When one makes external contributions and are made owners carry common stocks or preferred stocks. Now with internal ownership which is called retained earnings. Retained earnings are self-generated by the business. When the company makes a profit it retains them. This is good for the stockholders because they get the money back that they have invested plus the profits called dividends!

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