02 Dec 2019 12:43:11
Just reading over United's accounts in the red football limited accounts there is 474 million just sitting there under capital contribution. Has been for three years . Why don't the glazers use that to pay off debts?
02 Dec 2019 14:40:08
It's not money. Net debt is no longer a substantial problem. If they wanted to pay it off they could sell more stock to the public.
02 Dec 2019 15:08:26
It's cash in the capitol contribution reserve .
03 Dec 2019 00:20:33
No. Cash will be in cash. Cash is an asset, along with receivables, fixed assets, and intangible assets. Capital provided is a liability along with unpaid borrowings and amounts owed to creditors. Assets and Liabilities always balance which is why its called a balance sheet.
So if I contribute £200 in capital to start a company, borrow £200 and then go and buy a piece of equipment for £300 I will have assets of £100 cash and £300 equipment = £400 which will balance with the company's liabilities of £200 in debt and £200 shareholder's capital = £400.