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FRL 300_01 - variable loan it is too risky Something FUN...

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3/30/2009_x000D_FRL 300 Balance Sheet Point of time (day, date) Assets: Liabilities: Cash Expense Equipment Short term loan Building Long term loan Land Equity: Property Command Stock retion earning Total Assets Total Liabilities + Equity TA=TL+OE Total Assets = Total Liabilities + Owner Equity Real life example: Buy house: 430,000 + 70,000 500,000 Sale house:  600,000 100,000 Equity Rent or Owning: Rent Owning 1000/mo. 1000/mo. One Year: 12,000 12,000 Home Loan: Loan: 100,00 Year: 30 10y 20y 30y 1000/mo. End of the 30 Year You Paid: 100,000 (Original 100,000) 200,000 (Interest you have to pay) 300,000 10y 20y 30y 500/ 1/2mo. End of the 30 Year you paid: 100,000 (Original 100,000) 100,000 (Interest you have to pay) [P.S: It won't work on education loan and car loan] Just pay  12,000 that's  all Most is  interest rate;  about  10,000 is  Tax D Fixed rate: Always the  same rate market. NEVER take 
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Unformatted text preview: variable loan it is too risky. Something FUN: FLK - Funny looking kids [WHY there is BIG different? It is all about TIME Value OF MONEY ] 3/30/2009_x000D_FRL 300 Income statement Period usuall one year. Revenues Expense Net profit [P.S: usually the business people ask what is you company bottom line. Depresion expense: Life? (methor to find out depresion Accounting book) SL(streat line) SL= Purches Price - Sale Price Year Depresion is good for Company becaue it is tax D. More depresion is good Book Value? (take look that is BOOK Value) Cash Flow: (take look what is Cash Flow) For some of the non-profit company they use: Net revenuse over expense [P.S: No matter the equipment is been use or not. The equipment is avable for service is Depresing....
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