Effect on profitablility

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MANGESH SHANTARAM MOHITE (Querist)
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29 October 2011 REspected sir,

if i reduce the sundry creditors, what effect does it make on profitability, whether it will increase the profit or loss.

plz suggest me.

kartik_somu

kartik_somu (Expert)
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29 October 2011 when you reduce creditors, your liability will reduce, increasing your profits

MANGESH SHANTARAM MOHITE

MANGESH SHANTARAM MOHITE (Querist)
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29 October 2011 Thanks sir,

and also if i increase the stock what effect will it make on profitability

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