Business Memo: (250 – 300 words)

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Mr. Profit is the owner of a small landscaping business. He has always hired a bookkeeper to do all the accounting work.In fact, Mr. Profit did not take any financial accounting classes in college. He has just returned from a meeting with the banker, Mr. Money.

Mr. Profit was asked several questions regarding his financial statements, especially the balance sheet.In order to get the business loan, he needs to explain to Mr. Money the following:

1. What is a balance sheet?

2. What are the different sections of the balance sheet?

3. What are current assets? Give 3-4 examples.

4. What are current liabilities? Give 3-4 examples.

5. What are Property, Plant, and Equipment? Give 3-4 examples.

Based on a review of the Balance Sheet, Current Assets are $450,000 and Current Liabilities are $300,000.

What is the current ratio?


You are to write a 250 – 300 word memo to Mr. Money and answer these questions.


You use the memo feature in word.

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