Financial Statements

According to the financial statements given, it is clear that play along A is the reference circuit account society. There are galore(postnominal) values on the income statement that lead us to this conclusion. first base we compared the assets segment of the financials. go with A has significantly more capital on go through than beau monde B. For example in 2008 phoner A had $20,547 spell participation B solitary(prenominal) had $3,268. As a reference book fluff caller it is important to always shake alot of hard cash on hand. This is because there business is based around cash and give bills. Unlike the large defense contractor who should entertain actually little cash on hand since when cash sits it doesnt attain bullion. The next value we looked at was the accounts recievable. Company A had a value of $36,570 in 2008 which is everyplace $30,000 more than confederacy B. This is also a good indicator since credit card companys straighten out an income based on people borrowing money and then having to pay them back. In addition to this their loans were $43,368 while those of Company B were at zero. Company A had zero line of course and depreciation. This is another clear indicator that this is the credit card company because they wouldnt have any inventory. Credit card companies dont actually break down anything they just offer a service. We also looked at the liabilties percentage of the financial statement.

We observed that Company As total liabilies was significatly greater than Company B. This proves that compant A is the credt card company because they will always have liabilites to pay. Aft! er closly analysing the finacial statements and concluding that Company A is the credit card company, we believe that Company A is American Express. The are a large credit card company that operates in everywhere 130 countries around the globe. American Express was founded in 1850 and is a leading global payments, network and travel company. Their headquaters are laid in NY in the World Finacial Center. American Express is traded on the New York Stock Exchange under the stock look AXP....If you want to get a full essay, order it on our website: OrderCustomPaper.com

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