Financial advisors must determine the level of risk an organization is willing to assume before investments can be properly executed. Leverage – The simplest way to apply this principle is to magnify earnings that are the direct result of fixed costs. Limited, Sydney Prentice-Hall Canada Inc., Toronto Prentice-Hall International , i *. A., Mexico ~reittic^H& of India Private L m t d New Delhi iie, Prentice-Hall o Japan, Inc., Tokyo f Simon & Schustet Asia Pte. Printed in the United Sutes of America 1 0 9 8 7 6 5 4 3 ". " i ISBN 0-13-50Ob53-8 (UK) L m t d Landau iie, Prentice-Hall of Australia Ply.These magnifications can be realized by operational, financial and total or combined leverage. Time Value of Money – Every penny earned or invested has a time value.Omega Health needs to be sure this principle is kept in check. Valuation – Knowing that the current value of an asset is equal to the present value of future cash flows is critical.Current assets include cash and cash equivalents, accounts receivables, prepaid expenses, property plant and equipment, deferred financing costs, deferred third reimbursements, many more items of the similar trait (Cleverley & Cameron, 2007).Current liabilities include current portion of the “long-term debt,” notes payable, accounts payable, accrued expenses, accrued wages, salaries, and fees, payments to third party payers, accrued retirement costs, and many more items of the similar trait (Cleverley & Cameron, 2007).The largest company in its industry, Western Union has serviced cash payments for thousands of well-known corporations for more than one hundred years.As registered QUICK COLLECT merchants, The Paper Store Inc.The balance sheets of Omega Health Foundation indicate the decrease in the current ratio from fiscal year 2008 to fiscal year 2009 from 1.42 to 1.1.The liquidity of Omega Health Foundation decreased to 10% from 29% in the fiscal year 2009.