Reference no: EM131516519

Question: Can you rewrite this paragraph with your own words ?

Creditor: As the creditors figure showed among liability accounts, the variance change between 2014 to 2015 experienced a 20% (a(1)J37) increase in current liability. It means more funds of entity were coming from external (e.g. bank loan). However, this variance reaches a significant high level in non-current liability which is 1346.81% (a(1)J42). Whereas, Bonto Ltd experiences a decline on both size and profitability in recent year, it will create a high risk for company if it continues to keep this increased level of creditors unless the company retains high efficiency on solvency. Besides, time interest earned ratio has decreased rapidly from 2.50 to 0.25 between 2014 and 2015 (a(2)E56,F56) which indicates the company nearly loses the solvency in 2015. Consequently, the company retains low efficiency on solvency, it could be unreasonable to attract more fund from creditors. In other words, how could creditors support more fund to a company in such poor financial position. Hence, the valuations of creditors need to examine by another auditors, which require further investigation about relevant information to prove how could Bonto Ltd attract these funds from creditors.