Financial reporting problem Assignment Example | Topics and Well Written Essays - 250 words

Financial reporting problem - Assignment Example If the individual components of Total Current Liabilities are taken into account, it can be noticed that short term borrowing has been reduced to nil in 2011 which $26 last year. Accounts payable have increased by $597 in the current year. There was no current portion of long-term debt last year however this year the amount in respect of this account has jumped to $900. Considerable amount of increase can also be observed in respect of other current liabilities which include Accrued Salaries and Benefits by $187, Accrued sales and other taxes by $13, other current liabilities by $212 and, Deferred membership fees by $869. On a concluding note, it can be analyzed that the increase in the Total Current Liabilities by around 20% is a heavy increase. The company is advised to ensure that the current liabilities should be kept under the range of 10%, otherwise the company may be pushed into sever working capital