I need reply to my classmate's posts.

Post #1

All this answer the question I use my word to describe

1. Financial position is a company bacis structure that it keep company in active or Pasiv field. Second part answer it is easy, if you doesn't have financial position doesn't think about company and their act in future.

2 It is a big different between assets and expense. Assets what company have, expense what company must be pay to keep what it have. 2 this aspect is important for a company act in future. They are complete each other. For instance assets building etc, expense I say first all of them when remember utilities expense.

3. Retained earnings in my own word I can say amount that company pay all of their expenses and what amount stay it is retained earnings . You can found it in financial statement in balance sheet equity section . They can show us how well or bad company act a.

4. 1. When i open Appendix A and Appendix B, it is obviously easy which company has a higher assets.

• American Eagle 1,818,313 US dollar
• The Buckle 538,116 US dollar.Obviously American Eagle has a high total assets.If you want to see what have some company, see only total assets line.2.
• American Eagle 569,522 US dollar
• The Buckle 146,868 US dollar.

Obviously American Eagle has a high liability. And like a assets, liability too, I you want to see how much liability, or other word what current and non current amount company must be pay, see liabilities line in statement.

3. Total assets and total liability provide us very important information. So when you see total assets line you can see high amount, but we can not say, ohh good company, after seeing total assets see how much money liabilities company has. So when you have it is to very important info you can say your first option about company .

4.

• American Eagle 204,163 US dollar
• The Buckle 89,700 US dollar.

Obviously Amerivan Eagle has a high net income. It is normally for this 2 company, because American Eagle company big company than The Buckle. Every one in its size work good. If every company has a good act in future it will bring up good amount like a American Eagle.

Post #2

Financial position refers to the snapshot of a company's financial health at a specific point in time. It is measured by preparing a balance sheet, which lists assets, liabilities, and owner's equity. This is crucial for understanding a company's solvency, liquidity, and overall stability. Creditors rely on this information to assess a company's ability to repay loans, while investors use it to evaluate the company's financial health.

Assets are resources a company owns that provide future benefits, like buildings or cash. Expenses are costs incurred in daily operations, like salaries or rent. The difference is crucial because assets represent future value, while expenses are past costs. An example of an asset is machinery, and an expense is the monthly utility bill.

Retained earnings are the accumulated profits or losses a company keeps and reinvests since its inception. They are part of the company's equity. Retained earnings are affected by net income (profit) and net losses. When a company makes a profit, it increases retained earnings; when it suffers a loss, it reduces them.

The first company has higher total assets, with a total of $1,816,313.

The first company also has higher total liabilities, with a total of $569,522.

For creditors, total assets show how much a company owns, which could be used to repay debts. Total liabilities indicate the company's existing debt load. In this case, the first company has more resources but also more debt, so creditors need to assess the company's ability to manage its debt and generate cash flow.

The first company reports higher net income, with a net income of $204,163. However, higher net income doesn't always mean a company is more profitable. Profitability depends on various factors, like expenses and industry norms. In this case, the first company has higher net income but also higher assets and liabilities. To gauge profitability, you need to consider additional financial information.