1ACCOUNTINGReflection After observing the Balance Sheet and Trial Balance of Zen Drop Limited for the yearended 30 September 2017, I would like to highlight some of the major financial factors of thecompany. From the balance sheet of Zen Drop Limited, I have noticed that the total amount ofcash in bank is 9720110. While comparing the current assets and liabilities of Zen Drop Limited,I have seen that the total amount of current assets is higher than the total amount of currentliabilities. In case of the accounts receivable and accounts payable of the company, I haveobserved that the total amount of accounts receivable is higher than the total amount of accountspayable of the company (Anjum and Malik 2013). This is a strong financial indicator for ZenDrop Limited that it has the sufficient liquidity position to pay the business creditors. From this, Ihave concluded that the liquidity position of the company is good as Zen Drop Limited has thefinancial capability to pay its current obligations (Holden, Jacobsen and Subrahmanyam 2014). Iwould also like to mention the fact the overall financial position of Zen Drop Limited is in goodshape as the total assets of Zen Drop Limited is higher than its total liabilities. I have alsoobserved the fact that the amount of share capital is more than that of non-current liabilities thatis loans. From this, it is clear that the capital structure of Zen Drop Limited consists more ofshare capital that long-term borrowing (Dalal 2013). This aspect reduces the financial risk of thecompany and Zen Drop Limited does not have to bear large amount of interest expenses (Jain,Singh and Yadav 2013). Hence, based on the above discussion, I would like to mention the factthat the financial position of Zen Drop Limited is in good condition as the company has strongliquidity position and the proportion of share capital is more in the capital structure of Zen DropLimited.

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Financial Analysis of Zen Drop Limited

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