Receivable Accounts Payable Of The Company â€Myassignmenthelp.Com

Question: Discuss About The Receivable Accounts Payable Of The Company? Answer: Introducation After observing the Balance Sheet and Trial Balance of Zen Drop Limited for the year ended 30 September 2017, I would like to highlight some of the major financial factors of the company. From the balance sheet of Zen Drop Limited, I have noticed that the total amount of cash in bank is 9720110. While comparing the current assets and liabilities of Zen Drop Limited, I have seen that the total amount of current assets is higher than the total amount of current liabilities. In case of the accounts receivable and accounting payable of the company, I have observed that the total amount of accounts receivable is higher than the total amount of accounts payable of the company (Anjum and Malik 2013). This is a strong financial indicator for Zen Drop Limited that it has the sufficient liquidity position to pay the business creditors. From this, I have concluded that the liquidity position of the company is good as Zen Drop Limited has the financial capability to pay its current obligations ( Holden, Jacobsen and Subrahmanyam 2014). I would also like to mention the fact the overall financial position of Zen Drop Limited is in good shape as the total assets of Zen Drop Limited is higher than its total liabilities. I have also observed the fact that the amount of share capital is more than that of non-current liabilities that is loans. From this, it is clear that the capital structure of Zen Drop Limited consists more of share capital that long-term borrowing (Dalal 2013). This aspect reduces the financial risk of the company and Zen Drop Limited does not have to bear large business of interest expenses (Jain, Singh and Yadav 2013). Hence, based on the above discussion, I would like to mention the fact that the financial position of Zen Drop Limited is in good condition as the company has strong liquidity position and the proportion of share capital is more in the capital structure of Zen Drop Limited. References Anjum, S. and Malik, Q.A., 2013. Determinants of corporate liquidity-An analysis of cash holdings.Journal of Business and Management,7(2), pp.94-100. Dalal, G., 2013. Capital Structure Decisions.Journal of Business Management Social Sciences Research (JBMSSR) ISSN, (2319-5614). Holden, C.W., Jacobsen, S. and Subrahmanyam, A., 2014. The empirical analysis of liquidity.Foundations and Trends in Finance,8(4), pp.263-365. Jain, P.K., Singh, S. and Yadav, S.S., 2013. Capital Structure Decisions. InFinancial Management Practices(pp. 77-158). Springer India.