Quickbooks Essay Example | Topics and Well Written Essays - 500 words

Quickbooks - Essay Example The company would have also opted to obtain loans from other financial institutions, this would have helped in increasing the companies gearing ratio which is very low. The company current ratio is also negative this is as a result of its payables being more than its receivables; the company has incurred a lot of accrued debts which are to be settled in the next financial year. These incurred debts tend to lower the companies gearing ratio thus putting it in a bad financial position. The company has no retained earnings as per the end of the month of December. This is quite evident on its financial statements because the little amounts that it has it uses it in paying its declared dividends and some money in paying out its debtors whose debt periods are almost maturing. The company has also used most of its funds in the purchase of assets as evident in the financial statements. The company should reduce the amounts of expenditure on assets and put much of its funds in generating additional income that will help in increasing its financial position a bit higher (Brown, Beekes & Verhoeven 2011). The company should also adopt a much more cost saving strategy that will help in reducing its rate of depreciation. The management should adopt measures that are much better that the policies adopted on the month of