if she does not withdraw or deposit any money, the interest that Carla will earn at the end of 6 months is $7.81
What is the equivalent 6-month interest rate?
The interest rate for the savings account in a period of 6 months can be determined as the annual interest rate divided by 2 or the annual interest rate multiplied by 6 months , then divided by 12 months.
six-month interest rate=2.5%*6/12
six month interest=1.25%
The interest in dollar terms after 6 months is determined as the deposit multiplied by the six-month interest rate since the requirement is to compute Carla's interest in dollar terms after 6 months of having placed the deposit
six-month interest in dollars=$625*1.25%
six-month interest in dollars=$7.81
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Over the past year, how often did franklin aerospace sell and replace its inventory?
Franklin aerospace sell and replace its inventory approximately 27.40 times.
The quick Ratios formula is as follows:
Quick ratio = [tex]\frac{CA - inventory - Prepaid Expenses}{Current Liabilities}[/tex]
where CA stands for Current Assets.
An increase in the quick ratio over time usually indicates that the company's liquidity position is strengthening and that its short-term assets are well managed.
Total Current Assets - Cash - Accounts Receivables = Inventory
Inventory = 73,000 - 32850 - 18250
= $21900
Goods turnover is used to determine how frequently a company utilizes and sells inventory over a specific time period.
A high inventory turnover ratio indicates how quickly merchandise is sold. As a result, the larger the ratio, the better it is for a company.
Now using the inventory turnover ratio formula:
Inventory Turnover Ratio = Net Sales /Average Stock
= 600,000/21,900
= 27.40 times approximately
Hence, the answer is 27.40 times.
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The theory of ________ states that the primary obligation of business leaders is to serve the interests of stockholders by maximizing profits.
The theory of Managerial capitalism states that the primary obligation of business leaders is to serve the interests of stockholders by maximizing profits.
What is Managerial capitalism?Managerial Capitalism is known to be a system that brought a new way or system of getting to know of the changing structure of a given economy via the introduction and behavior of a new class which are the managers.
Note that based on the above, The theory of Managerial capitalism states that the primary obligation of business leaders is to serve the interests of stockholders by maximizing profits.
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Managerial capitalism theory states that the primary obligation of business leaders is to serve the interests of stockholders by maximizing profits.
Managerial Capitalism introduces a new way of understanding the changing structure of the economy through the emergence and behavior of a new class that is, managers.
In the past years, managers tended to form compromises with workers. However, under neoliberalism, allegiances have shifted.
This therefore draws us to an understanding that, the theory of managerial capitalism states that the primary obligation of business leaders is to serve the interests of stockholders by maximizing profits.
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________________ is a spacing technique that allows text to be squeezed or stretched as necessary to fit in a specific amount of space.
Tracking is a spacing technique that allows text to be squeezed or stretched as necessary to fit in a specific amount of space.
What is tracking?The typographer refers to letter spacing as "tracking." Tracking, which is sometimes mistaken with kerning (which alters the distance between individual letters), alters the letter-spacing consistently across a variety of characters.
Designers use tracking primarily for two reasons:
First of all, increased tracking can make text easier to read. When characters are separated visually from one another, the eye can process them more quickly than if they were packed densely together.Tracking is a technique that many designers use to make typeset text look better. Increased or decreased tracking can eliminate widows and orphans (lone words at the end of a paragraph) and lessen the quantity of hyphenation in a paragraph (lone words at the top of a page, which should belong on the previous page).To learn more about tracking visit:
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The difference between consumer sales promotion methods and trade sales promotion methods is:________
Consumer sales promotions focus on getting consumers to buy their products, while trade sales promotions focus on getting wholesalers and retailers to buy.
Consumer sales promotion is a marketing technique that is used to entice customers to purchase a product.
Some of the consumer sales promotion types include;
Coupons, contests, samples, and premiums are among the types of sales promotions aimed at consumers.
Trade sales promotion is a marketing strategy directed at resellers. It involves offering incentives to encourage them to purchase.
Some of the trade sales promotion types include;
Trade shows, sales contests, trade allowances, and push money aimed at wholesalers and retailers
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Which section directly manages tactical activities and oversees the staging area?
This means that all of the tactical or response resources assigned to the incident are organised, delegated, and overseen by the Operations Section Chief.
What is Operation section?
All incident tactical operations are carried out by the Operations Section. The Operations Section's activities address important concerns such life safety, incident stabilisation, property preservation, and the return of regular roadway operations. Every time ICS is established at a roadway incident, organisational components of the Operations Section will be present.The levels of the complete organisational hierarchy for the Operations Section are depicted in Exhibit 2-4. A resource is the name given to the lowest organisational unit, which can be a crew of people or a single piece of machinery. Resources can be divided into functional Groups or geographical Divisions as needed. Divisions and groups can be arranged under many Branches for very large events.The Operations Section and the organisational components that make it up change as needed.To know more about Operation section visit:
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Describe the effect on demand curves for office visits to a physician when the patient pays a flat amount, for example, $25, per doctor visit
A kind of copayment is indemnity insurance. A predetermined sum is given to the participant in this plan for each individual medical treatment that is received. The insurance policy has a clause that establishes the payment schedule in its entirety.
A hospital-employed doctor may be made to sign an indemnity agreement that absolves the hospital of any culpability if a patient is injured. The doctor will cover the hospital's legal expenses if it's sued because of his actions. The hospital won't be sued. To safeguard against being sued by a patient, a doctor may need malpractice insurance, a kind of indemnity insurance.
In the absence of health insurance that covers medical expenses, Q1 on the figure below indicates the total number of visits to the doctor. However, if the client's health insurance policy guarantees payment of $25 each time that treatment is used, the client's demand curve will move to the right by $25 for each practicable amount of the service consumed. As a result, Q2 is the number of medical services used at $25 per unit under the indemnity plan.
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Which one of the following is a privately held corporation?
a. intel
b. general electric
c. caterpillar inc.
d. cargill inc.
Cargill Inc. is a privately help corporation so the correct answer is letter D.
Cargill Incorporated is under the consumer staple industry that offers foods as products. This company is privately owned by an American family (Cargill Family), founded during 1865, and is based in Minnesota but incorporated in Delaware.
Intel is a public multinational corporation under technology industry and sector.
General Electric is a public conglomerate company operating in power and digital industry sector.
Caterpillar Inc. is publicly traded company in heavy equipment and engines sectors.
Thus, only Cargill Inc. among the choices is the privately held corporation.
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Emotional support and companionship may be perceived as being _____ in a relationship.
Emotional support and companionship may be perceived as being _____ in a relationship.
It's possible to view companionship and emotional support as rewards in a relationship.
A type of consolation or assistance we receive from those close to us during trying times is known as emotional support. Many people provide emotional support to others by speaking encouragingly, reassuringly, or even compassionately.
Sometimes it can be difficult to receive emotional support. There's a curious thing about human psychology, though, in that we don't necessarily seek out emotional support from everyone just because they're eager to give it. Some degree of sensitivity is companionship required. We frequently look to certain persons in our lives to make us feel emotional support. It resembles seeking someone else's acceptance in delicate situations, such as from parents or others.
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You want to purchase gm stock at $40 from your broker using as little of your own money as possible. if initial margin is 50 nd you have $4,000 to invest, how many shares can you buy?
You can buy ($4000/$40) = 100 shares outright and you can borrow $4,000 to buy another 100 shares.
Shares signify ownership in a corporation. An individual becomes a shareholder in your business when they purchase shares. Shareholders decide who runs a business and participate in important decisions like whether a company should be sold.
The capital of a company is split up into tiny, equal units of a finite number. Shares are the name given to each unit. A share, to put it simply, is a portion of ownership in a business or a financial asset. Shareholders are investors who own stock in a company. Shares are fractional ownership interests in a corporation. For some businesses, shares are a type of financial asset that allows for the equal distribution of any declared residual profits in the form of dividends.
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What is the cost of capital for the building if its value is $1900000 and annual cash flows forever of $200000 are expected with the first one in 1 year?
Cost of Debt = Credit Spread + Risk-Free Rate of Return (1 – Tax Rate)
The return a business must achieve to cover the cost of a capital project, such purchasing new machinery or constructing a new structure, is known as the cost of capital. The costs of both equity and debt are included in the cost of capital, depending on the company's chosen or existing capital structure. A company's long-term performance depends on its equity, which is the sum of money shareholders receive after selling off assets and paying off obligations.
The cost of a company's money (debt and stock) is what economists and accountants refer to as the cost of capital, or from the perspective of an investor, "the needed rate of return on a portfolio company's current securities." It is employed by businesses to assess new projects.
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10. in cell c12, insert a formula that divides the total orders for august (cell c9) by the total number of orders (cell i9). use an absolute reference to cell i9, and then copy the formula to the range d12:g12.
The formula that divides the total orders for august(cell c9) by the total number of orders(cell ci9)= C9/$I$9. We use the sign $ for absolute reference.
Excel Spreadsheet
A worksheet is the grid of columns and rows that information is inputted into. In numerous spreadsheet operations( similar as Microsoft Excel) one file-- called a workbook-- can contain several worksheets. Worksheets can be named using the distance tabs of the bottom of the spreadsheet window. The distance tabs can also be used to switch from one worksheet to another within a workbook.
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The question was incomplete. Check below the full question with picture
In cell C12, insert a formula that divides the total orders for August (cell C9) by the total number of orders (cell I9). Use an absolute reference to cell I9, and then copy the formula to the range D12:G12
You want to purchase ko stock at $60 from your broker using as little of your own money as possible. if initial margin is 50 nd you have $3,000 to invest, how many shares can you buy?
100 shares > .5 = [(Q × $60) - $3,000]/(Q × $60); $30Q = $60Q - $3,000; $30Q = $3,000; Q = 100.
100 SHARES CAN BE BOUGHT.
Which stock do you mean?
In general, the ownership certificates of any corporation are referred to as stocks. On the other hand, a share alludes to a certain company's stock certificate. You become a shareholder if you possess shares of a specific corporation. There are two categories of stocks: ordinary and preferred.
Preferred and Common Stock
There are two different stock types available for purchase. All businesses that are traded publicly issue common stock. Additionally, some businesses will offer preferred stock, which has a somewhat lower risk of financial loss but a lower possibility for overall profit.
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Song corp's stock price at the end of last year was $28.50 and its earnings per share for the year were $1.30. what was its p/e ratio?
A P/E ratio is the Price/ Earnings ratio, which is a valuation multiple.
It is defined as
P/E Ratio = Price / EPS
We are given the following Price = $28.5
EPS = $1.3
Hence , P/E Ratio = Price / EPS
P/E = 28.5/ 1.3
P/E = 21.92
Hence the answer is 21.92
what is the price-earnings proportion?
The price-earnings proportion, too known as P/E proportion, P/E, or PER, is the proportion of a company's share (stock) cost to the company's profit per share. The proportion is utilized for esteeming companies and to discover whether they are exaggerated or underestimated.
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How+much+would+$10,000+due+in+50+years+be+worth+today+if+the+discount+rate+were+7.5%?
$10,000 due in 50 years be worth today if the discount rate were 7.5% will be $186.04
How to find the inflation rate?
To calculate the discounted rate after 50 years, we will use the following formula:
[tex]FV=PV(1+r)n\\10000=PV(1+0.075)50\\10000=(1.075)50PV\\PV=\frac{10000}{53.75} \\PV=186.04[/tex]
Here,
PV = Present value
FV = Final value
r = rate of discount
n = the time period
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In a study of managers on three continents, 74 percent of successful managers indicated that _______________________ was their most significant characteristic.
In a study of managers on three continents, 74 percent of successful managers indicated that Emotional Intelligence was their most significant characteristic.
What is Emotional Intelligence?The most common definition of emotional intelligence (EI) is the capacity to recognize, utilize, comprehend, regulate, and control emotions. People with high emotional intelligence are able to identify their own emotions as well as those of others, use emotional information to direct their behavior and thinking, differentiate between various emotions and assign the proper labels to each one, and modify their emotions to fit their environment. Although the phrase was originally used in 1964, it became well-known because to science journalist Daniel Goleman's best-selling book Emotional Intelligence, which was published in 1995. EI, according to Goleman, is a collection of abilities and traits that influence leadership success.The capacity to recognize, manage, and assess emotions is referred to as emotional intelligence. While some academics contend that emotional intelligence may be taught and developed, others contend that it is an innate quality.To learn more about Emotional Intelligence, refer to:
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Swifty Corporation's December 31, 2020 balance sheet showed the following 6% preferred stock $10 par value cumulative, 35000 shares swifty total paid in capital was:_________
Swifty's total paid-in capital was $57319000.
The key to this problem is to recognize that when companies purchase their own shares and hold them for future use , the stock is called treasury stock. Treasury Record is recorded at the dollar amount paid for the stock.Treasury Stock is the contra stockholder's equity account.It has a debit balance while most stockholder's equity accounts have credit balances.
Total Stockholder's equity calculation
Preferred stock ⇒ $440000
Common stock ⇒ $19500000
Paid-in capital in excess of par-preferred stock ⇒ $64000
Paid-in capital in excess of par-common stock ⇒ $ 28300000
Retained Earning⇒ $9750000
Treasury Stock (35000 Shares )⇒ $-735000
Total paid-in capital ⇒ $57319000
Therefore, Swifty's total paid-in capital was $57319000.
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Swifty Corporation's December 31, 2020 balance sheet showed the following:
6% preferred stock, $20 par value, cumulative, 35000 shares authorized;
22000 shares issued $440000
Common stock, $10 par value, 3,000,000 shares authorized;
1,950,000 shares issued, 1,920,000 shares outstanding 19500000
Paid-in capital in excess of par value -preferred stock 64000
Paid-in capital in excess of par value-common stock 28300000
Retained earnings 9750000
Treasury stock (35000 shares) 735000
Swifty's total stockholders' equity was
$606610.$58789000.$57319000.$47879000.When to order can be calculated by the rop and expressed as a quantity. group of answer choices
a. true
b. false
When to order can be calculated by the ROP and expressed as a quantity.
True, the given statement is correct.
ROP models show when orders should be placed in relation to available inventory.
What is the ROP model?Reorder point, or ROP is the inventory level at which an order to restock the stock of goods is activated. As inventories are depleted over time, the item gets reordered once it reaches the ROP. There is a unique reorder point for each item or SKU. In essence, the reorder point enables you to place an order just in time to avoid the supply running out before the replenishment limit.
Data input is necessary for the order point (ROP) model. The system will be able to offer the ROP with the use of an algorithm. These are the input details:
The merchandise's rate of consumption
The amount of time it takes for an item to arrive at your factory
The quantity of safety stock you have
Thus, the ROP model is dynamic, something that must be kept in mind. That implies that all variables and parameters experience changes over time. It is advised that you examine and update it every three to six months.
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To prevent payments to fictitious vendors, who should have access to the vendor master file?
To prevent payments to fictitious vendors, Segregation of duties between the controller (accounts payable) and the cashier (who receives checks) Allows payments only to approved vendors who have access to the vendor master file.
A master vendor file, also known as a supplier portfolio, is a comprehensive list of all of an organization's vendors and suppliers from every division. Data such as vendor contact details, diversity status, Tax ID, corporate hierarchy, expenditure amount, and more are contained in master vendor files.
The integration of ERP and e-sourcing tools as well as the easy application of technology are made possible by accurate, clear vendor master data. Employees find it less difficult to keep track of the digital supply chain, maintain vendor accounts, and adhere to tax reporting and other rules.
The vendor's name, address, contact details, and tax identification number are typically included in this vendor file. The data is utilized to speed up transactions and payments to suppliers when buying products and services.
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Scientists have found that high temperatures and lack of rainfall can result in a sharp decline in the number of fish in a lake. This is most likely an example of what process?.
Scientists have found that high temperatures and lack of rainfall can result in a sharp decrease in the number of fish in a lake. This is most likely an example of abiotic factors which declines the availability of biotic resources.
The abiotic factors are those factors that can define which organisms are able or not able to live in a specified environment. The living organisms will be constituted by the biotic factors as they can define if an organism can live in a specified place of environment. So indirectly it is evident that the abiotic factors are well controlling the biotic factors existing in an environment.
The major important abiotic factors are those which include water, sunlight, oxygen, soil, and also temperature. Water is a very important abiotic factor on earth though it is often said that as“water is life.” All living organisms need water for their better survival.
Environmental factors influencing populations are generally divided into two categories such as abiotic and biotic factors. Abiotic factors in fact refer to the non-living components which are the physical and chemical elements that exist in an ecosystem which includes rainfall, temperature, pH, sunlight, shelter, etc:
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A firm has an issue of preferred stock outstanding that pays a $5 dividend every year, in perpetuity. if this issue currently sells for $84.12 per share, what is the required return?
The required return is $5.94%
How do we find the Required return?The per-share value is thus given by
[tex]P_{0}[/tex] =[tex]\frac{D}{R}[/tex]
where R is the required return
Given that,
preferred stock = $5
currently sells = $84.12 per share
To find the required return,
R= [tex]\frac{D}{p_{0} } }[/tex]
R=$5 / $84.12
R= .0594 = 5.94%
We can determine a value for the stock under a few very helpful special circumstances. What we need to do is make some generalizations about the dividend growth rate, or the pattern of future dividends.
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Antonella has been writing emails since elementary school. what should she pay special attention to in a way that maybe she did not when she was younger?
Using the BCC line to protect everyone's privacy, a subject line with at least five words, and special attention to her entire name in the signature, including middle name for professional purposes.
Professional emails should properly segment their recipients and include information about the email's context and subject. Details and the appropriate classification should be included when mentioning the sender.
When you use Microsoft Outlook for the first time, the BCC field is not immediately activated. The Microsoft Outlook BCC feature's activation is covered in this tutorial.
BCC stands for "blind carbon copy," and it has several features in common with CC. A recipient will receive a copy of your email in their inbox if you include their email address in the BCC field, just like if you had included it in the CC field.
They won't get future Reply or Reply All messages from other participants in the thread because their email address won't be visible to the other email recipients. Recipients of BCC are also blind to one another. Imagine it like a CC in stealth mode.
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In its 1st month of business, brewed awakenings, inc. Purchased $1,000 of supplies of which it had paid $700 and owes the rest. At the end of the month, it had $400 of supplies available for use. What is the amount of supplies expense on the income statement?.
Brewed Awakenings, Inc. completed its first month of operation. bought $1,000 worth of materials, of which it paid $700 and is still liable for the balance. It has $400 worth of supplies available at the conclusion of the month. There will be a $600 charge for materials on the income statement.
It spent $600 on items it had spent $1,000 on but only had $400 left. Supplies Expense is the amount used, and it is recorded as an adjusting entry with a debit of $600 to Supplies Expense and a credit of $600 to Supplies. One of the three crucial financial statements used to describe a company's financial performance throughout a certain accounting period is the income statement. An income statement offers useful information about a company's operations, managerial effectiveness, underperforming industries, and performance in comparison to competitors.
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Why do loan sharks worry less about moral hazard in connection with their borrowers than some other lenders do?
Loan sharks worry less about moral hazard in connection with their borrowers than some other lenders because moneylenders develop close relationships with borrowers to harass them for money, and they know that these borrowers often depend on them because they cannot get loans from reputable sources. Moneylenders monitor debt more closely and penalize more severely because they operate under less regulation. They know the cost of not paying them back is high.
Moneylenders are people who lend money to the public in order to make a profit through the withdrawal of a certain amount of interest. Moneylenders themselves do offer convenience in loans. In contrast to banks or other formal financial institutions which usually have several procedures, moneylenders offer speedy disbursement of loan funds. In addition, moneylenders also usually do not need collateral as collateral for the loan funds provided. Borrowing from moneylenders is not required to complete identity documents and other types of business information. Because the process is fast and easy, loan sharks are still an option for people to get quick funds when they need money, especially for urgent needs.
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In april 2015, blue bell laid off 37% of its 3,900 employees while also furloughing 1,400 more. If the justification was that a "cost-benefit" analysis shows the company’s bottom line will be improved in the short run, which approach to deciding ethical dilemmas has been utilized?.
In april 2015, blue bell laid off 37% of its 3,900 employees while also furloughing 1,400 more. If the justification was that a "cost-benefit" analysis shows the company’s bottom line will be improved in the short run, which approach to deciding ethical dilemmas has been utilized Utilitarian Approach.
The Utilitarian Approach assesses an action in terms of its consequences or outcomes; i.e., the web benefits and cost to any or all stakeholders on a personal level. It strives to attain the best good for the best number while creating the smallest amount of harm or preventing the best amount of suffering.
For example, if you're choosing a frozen dessert for yourself, the utilitarian view is that you simply should choose the flavor that may provide you with the foremost cost-benefit pleasure. If you enjoy chocolate but hate vanilla, you ought to choose chocolate for the pleasure it'll bring and avoid vanilla because it'll bring displeasure.
Utilitarianism is an ethical theory that determines right from wrong by specializing in outcomes. it's a cost-benefit variety of consequentialism. Utilitarianism holds that the foremost ethical choice is that which will produce the best good for the best number.
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What does IRS stand for?
internal revenue service
A firm has total assets of $456,000 and total equity of $217,000. what is the debt-equity ratio?
Total Debt = $456,000 - $217,000
= $239,000
Debt-Equity Ratio = $239,000 / $217,000
= 1.10
There for the debt-equity ratio is 1.10
What is Debt-equity ratio?
A company's financial leverage is measured by its debt-to-equity (D/E) ratio, which is calculated by dividing its total liabilities by the value of its shareholders. A key metric in corporate finance is the D/E ratio. It measures the proportion of debt that a company is employing to finance its operations as opposed to cash on hand. A specific kind of gearing ratio is the debt-to-equity ratio.
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Your friend decided to run for congress during the upcoming elections. She gathered 300 contributions of at least $5 and was given a grant from the state to use in the campaign. Her campaign is characteristic of.
Your friend decided to run for congress during the upcoming elections. She gathered 300 contributions of at least $5 and was given a grant from the state to use in the campaign. Her campaign is characteristic of: Federal Election Commission.
The Model Code of Conduct comes into force immediately on the announcement of the election schedule by the commission for the necessity of ensuring free and fair elections. Its main purpose is to confirm that campaign ruling parties, at the middle and within the States, don't misuse their position of advantage to achieve an unfair edge.
Prohibits any funds for political donation accounts from being solicited, received, directed, transferred, or spent campaign within the name of national political parties, Federal candidates or officials, or by joint fundraising activities by two or more party committees.
The committee has the right to permit symbols to the political parties. By voting, citizens are participating within the campaign democratic process. Citizens vote for leaders to represent them and their ideas, and also the leaders support the citizens' interests. There are many issues associated with global politics, and a few of those are associated with domestic politics.
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Find the present value of $12,075 if money was invested at 7.2% compounded continuously for
8 years, 9 months.
The present value of $12,075 is $22672.14 if the money is invested at 7.2% compounded continuously for 8 years and 9 months.
The formula for continuously compounded interest is obtained by computing the limit of this formula as n approaches infinity (according to the notion of continuous compounding):
Continuously compound interest formula
[tex]A = Pe^{rt}[/tex]
A - Amount
P - Principal
r - Rate
t - Time
P = $12075
r = 7.2 % = 7.2/100 = 0.072
t = 8 years 9 months
= 8 + 9/12 years
= 8 + 0.75
= 0.75 years
A = 12075 × [tex]e^{(0.072 * 0.75)}[/tex]
= 12075 × [tex]e^{0.63}[/tex]
= 12075 × 1.87761
= 22672.1408 $
So, the final amount is $22672.14
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The+offering+price+of+an+open-end+fund+is+$25.10+per+share+and+the+fund+is+sold+with+a+front-end+load+of+6%.+++what+is+its+net+asset+value?
When an open-end fund's offering price is $25.10 per share and the fund is sold with a front-end load of 6%, the net asset value is $23.54.
NAV = offering price × (1 - load) = $25.10 x (1 - 0.06) = $25.30 x 0.94 = $23.54
When assessing mutual funds or exchange-traded funds, the net asset value, or NAV, which displays the net value of a company or corporation, is typically utilized.
Investors assess an entity's value using the NAV, which displays the price per share of the fund or other entity at a specific time.
Investors should consider the NAV when looking for prospective possibilities because it represents the price at which shares are traded.
The NAV represents a per-share value of the fund when divided by the total number of shares owned, which aids investors in evaluating and choosing whether to manage or purchase shares in a given fund or company.
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A balance sheet has total assets of $1,588, fixed assets of $1,106, long-term debt of $588, and short-term debt of $177. what is the net working capital? $1,000 $482 $341 $305 $411
Net working capital = ($1,588 − 1,106) − $177 = $305
It is very important for business owners and accountants to understand how to create and interpret balance sheet statements. This financial report offers a brief overview of the financial position of the business. Without these reports, business owners and accountants can make decisions that have a negative impact on the company's financial position.
A balance sheet is a statement of the assets, liabilities, and capital of an organization as of a certain date. In short, it shows what the company owns and owns.
In addition, this report shows the amount invested in the business. The balance sheet along with other financial statements helps to calculate the profitability, liquidity, leverage and efficiency of a business.
The balance sheet has assets on the one hand and liabilities and capital on the other. Both sides are always the same. Therefore, Assets = Liabilities + Capital.
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