Module 07 Financial Accounting Project - Analysis, Free Cash Flow, and Cash Conversion Cycle

Module 03 -- Financial Accounting Project –

TransDigm Group Inc – Ratio Analysis of Current Liabilities

Rasmussen College

Esther Tejada

Author Note

This research is being submitted on November 2, 2014, for Professor Mark Jonas

A141/ACG1033 Section 04 Financial Accounting II - 2014 Fall Quarter

The figure for the current liabilities for the previous two years for the company was USD 322,500 in the FY 2013 and USD 233,915 in FY 2012. The results indicate that the figure for current liabilities showed an upward trend in the two years under observation. More specifically the current liabilities increased by 38% between the two years.

The current liabilities account that showed the largest change from one year to another was that in accounts payable which increased by 44% (USD 74,178 in 2012 to USD 106,768 in 2013). (DGM, Financial Statements, 2013)

The accrued liabilities included accrued interest, compensation and related benefits, interest rate swap agreements, product warranties and other accruals. The liability that made the largest portion of the accrued a liability was accrued interest, which was USD 59,869. (DGM, Notes to Financial Statements, 2013)

References

216.139.227.101, (2014). TransDigm Group Inc. Annual Report 2013. Retrieved 4 November 2014, from http://216.139.227.101/interactive/tdg2013/