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Balance Sheet

Balance Sheet

Q What conclusions about how the business is financed can be drawn from the composition of the organization’s capital? Based upon the defined capital structure, assess the risks facing the entrepreneur responsible for this business because of the capital structure. What can one conclude about the business’s financing based on the composition of the organization’s capital? To aid your analysis of capital structure, access the balance sheet for this discussion, and compute the debt to equity ratio as follows: • Add (current portion of long-term debt) + (long-term debt net of current portion) to obtain long-term debt. • Debt-to-equity ratio = Long-term debt/total shareholders’ equity. • Use the computed ratio to respond to the above questions. Offer a link to a video or an article that supports your analysis and conclusions

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A balance sheet can be considered as a perfect financial statement that reports the liabilities, assets and equity of the shareholder in a proper manner (Glackin, & Mariotti, 2020). Analysing the capital structure of the company is needed and t can be done with the help of the balance sheet. An individual can gain a perfect and needed insight about the busines and the condition of it at the current situation from the balance sheet.