We discuss in this module the equity section of balance sheet which represents the sources of funds to a business.
– Part of a business liabilities is the payroll. What are employment taxes? What are Social Security taxes and how do these taxes work? Does it make a difference if you are self-employed, or employed by a business?
– If you are a lender, do you think you may rely on any payroll data to assess business solvency? How about the rest of liabilities a business may have recorded? Does it make a difference if it is short-term or long-term liability? Would you please, provide us with links to some real financial statements of a business of your and provide your analysis of the business’s liabilities. Don’t forget to read the and share with us “Notes to Financial Statements” where the liabilities may be discussed
– How do you judge a business’s well-being from examining its capital structure? Does it make a difference who you are (investor, lender, government, labor union, etc..)? Show us part of a balance sheet that represents stockholders’ equity section of a company of your choice. Did you notice any notes attached to the financial statements relating to Stockholders’ equity section? Please share with us your findings and provide your resources as well.