Accounting for Managers

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Ref No: 950

Accounting for Managers

Accounting for Managers:A supplier is interested in the financial performance of the company and its efficiency in managing current assets and liabilities. The supplier is interested in these ratios because the company can default and the supplier can remain unpaid in such cases. The company pays suppliers on time only when it is able to earn significant profits.

Also, the days of receivables and days of payable show the receipt and payment of the company on average; this shows the smoothness of cash inflows and cash outflows of the company and also shows the chances that the supplier will be paid within a certain time period in usual circumstances. The ratios computed for Kesher Ltd are shown in the figure below:

Figure 1 – Ratios required by Suppliers

Part 1 (B)

This report analyzes the potential risks and benefits involved in the suppliers of Keshes Ltd. The ratios analyzed in the above part will be used to identify the risk and benefits….