Assessment 1---accounting for decision making Essay

Assessment 1---accounting for decision making - Essay ExampleThis indicates that the assets workoutd by the confederacy to generate profits increased relatively more than the income generated from those assets. As a result, ROA of the company declined from 2008 to 2010.d) Yes, the company should stir up about the decreasing trend in its quick ratio. This indicates that the company does non have ample limpid assets to repay its trivial term obligations. The creditors would become reluctant to sell goods on credit if the company does non improve its quick ratio.f) The company has a low sale turnover ratio which indicates that the assets are not being fully utilized to generate revenue and there is too much investment in unproductive assets. Furthermore, the company has a very low debt to assets ratio which indicates that the company is not utilizing the opportunity to use debt as a means of growing its business.Company should dispose of the unproductive assets and use the cashfl ow generated for paying of its short term debts and improve its liquidity. Moreover, the company should make use of long term debt for the growth of the