PowerPoint Presentation

First, the retained earnings increased by 85.35% compared from prior year. This will affect to increase in cash and accounts receivable which have 47.15% and 43.59% respectively. Additionally, since we have increase in Accounts Receivable, there might be an increase in uncollectible accounts which the reason doubtful allowance increases by 72.41%. A proper policy and terms for the customer should be strictly monitored by the Treasurer to avoid an increase in uncollected accounts.

Second, since we have more Sales during the year, an overtime for employees or a possible additional benefit is the reason there is an increase with Salaries Payable and other Taxes Payables. Long-term Payable may also be a result of additional investment, especially for PPE.

Third, Investment for PPE increased by 35.28% which is needed to increase the production and Sales. Other Investment such as Trading securities and Available-for-sale securities also increased.

On the other hand, Inventories decrease due to high demand of Sales. A proper control monitoring should properly address to have enough stocks and avoid delay due to it. Also, the Treasurer should also handle properly the proper timing of payment of current assets such as Notes Payable which have no movement since prior year.