Financial Statements Paper Part II Essay Example | Topics and Well Written Essays - 1000 words

Financial Statements Paper Part II - Essay Examplehere has been no reduction in equity of the friendship in year 2009 when compared with year 2008 so reduction in debt-equity ratio and debt ratio is attributed to lower debt component in year 2009. Lower debt-equity ratio reduces the risk of the come with during difficult time as witnessed after the financial crisis of 2008.Major impact in the Home funds performance has come in the form of interest coverage that has reduced in 2009 to sightly 6.98 times from the much safer coverage of 22.6 times in year 2008. This has also reduced its capacity to borrow more funds for concern expansion.As far as revenue is concerned, the company reported sales of $77.3 billion in 2008 it has decreased to $71.228 billion in 2009. The companys sales are in downward trends. It is apparent that the companys businesses have been touched by the economic recession that instal in after financial crisis in 2008-09. This reduction in revenue has also af fected its drop dead on assets that decreased significantly to 5.34% in year 2009 from 9.9% registered in 2008.Post 9/11 regulatory environment pertaining to information security has been quite rigorous. No company can afford to compromise with employee, customer and company info. Customers rely enormously on the company management and believe that their personal information and data will not get misused or compromised. It is true that any misappropriation of customer, employee or company data could endanger their reputation significantly resulting into financial losses apart from facing lawsuits by the affected people.Zoning regulations prevent use of property in a certain manner. Zoning regulations mean conformist to local land and building regulations and conduct businesses conforming to local laws. Zoning regulations also imposes certain conditions much(prenominal) as providing adequate parking facilities, timing of operations for doing business activities. Thus, zoning ordi nances may impact the business activities of the companys store in