Accounting programs like Quickbooks and Peachtree are affordable especially if you purchase only the modules you need based on the size of your business. It supports up to 10 simultaneous users, and its features include A/P, A/R, bank reconciliation, commissions, general ledger, inventory, invoicing, job tracking, purchase ordering and reporting. A general overview of the working capital management of the company is attained from the current ratio. Such element further strains the cash flow of the company and is a serious matter that the potential creditor should consider. Two techniques will be adopted to assess the financial health of Madison Stores and answer the questions requested by the shareholder and creditor noted above. A vertical analysis, also known as ratio analysis is also conducted in Appendix B. By entwining such techniques one can further enhance and support the arguments pertinent to the firms financial health. When one examines the profitability of the organization, consideration should also be given to the utilization of resources.

Better stock management is good for both the companys liquidity and profitability by enabling more cash available and reducing the risk of obsolete inventory. Its increase means that management was more effective in profit generation from resources. Indeed, the debtors collection period computed in Appendix B, shows an increase of 48 days. This is sustained by the decline in creditors payment period of 47 days computed in Appendix B. A serious concern is raised when one compares the creditors payment period of 324 days with the debtors collection period of 343 days. Is it time to build your own website or upgrade an existing one? Auditors help to ensure firms efficiency by keeping public records accurate and confirm payment of taxes properly and on time. Key Income Producing Facts: Your restaurant’s income is directly proportional to the time invested in activities for attracting more customers, filling in tables, maintaining food quality and improving the overall dining experience.

In this respect, in order to answer such a question attention is more devoted towards the liquidity and cash flow of the company. It is better not to enter too many items under a general heading of other expenses as this is more likely to be investigated as the type of expense has not been precisely identified. Focus your education by tailoring your graduate studies to your career interests, whether in management, taxation, financial planning, or general business. Such elements outline the working capital management, cash management and capital structure of the firm, all of which portray the going concern potential of the organization. Declining working capital management and ineffective credit control were noted that put a strain on the firms cash flow. This means that the risks of financial failure of the firm are declining due to lower interest commitments. This is due to the fact that payments to creditors are being made before money is collected from trade debtors. The computations pertinent to such an analysis are portrayed in Appendix A of this paper.

Hence, one can contend that the financial stability of the company is declining, hindering its going concern potential, which is an important element for shareholders and creditors as noted at the beginning of this paper. The cash of the company declined by 19.37. This is also a negative element on the firms liquidity. An examination of the cash flow statement further clarifies such conflicting figures by outline that the decline in cash is due to further investments and repayment of debts. Therefore, one can contend that this is a risky investment for the shareholder and it is thus advisable that heshe opts for other investments. In fact the short-term interest bearing liabilities increased by 81.09. Thus the benefit of lower interest due to lower debts will be gained next year. Indeed, non-current liabilities diminished by 8.86. However, the interest charges increased by 176.03 during the years. Myer Holdings is Australias largest department store group that has operated for over 100 years in such industry.

This ratio remained fairly stable during the years. This portrays that the companys effectiveness in utilizing its resources to generate profits remained fairly unchanged. It is crucial for ensuring clean reputation of an organization by ensuring it meets the legal standards, gain employee trust, confidence and loyalty, helps in reallocating resources and have a couple other undeclared benefits too. To provide financial information that is useful to existing and potential investors, lenders and other creditors in making decisions about providing resources to the reporting entity. However, in a customer-centric culture understanding the requirement for making constant improvement is highly valued. Indeed, both the revenue and profit elements increased from 2008 to 2009. This immediately hints improvement in the profitability of the organization, which means better returns for the potential shareholder. Therefore, the shareholder is interested in the profitability and growth of the organization. It is important that both the shareholder and creditor meticulously consider qualitative elements that also affect the organisation.