Following amounts have been Extracted from the records of Monday Limited. Description 2019 2018 - Rs. In 000- Sales 32,875 31,390 Gross profit 16,880 14,310 Profit for the year 3,300 2,700 Account receivable 3,860 2,510 Account payable 4,660 2,890 Inventory 430 445 Cash at bank 12 37 Bank overdraft 280 40 Monday Limited secured a large new contract to supply goods to a large departmental store across a two year period from 1st July 2019. Monday Limited normally offers wholesale customers 30 days’ credit, but department store would only agree to the contract with 90 days credit terms. The directors of Monday Limited agreed to this as they believed it was worth it to have their products placed with this department store. Monday Limited has an average 45 day credit from its suppliers. The bank overdraft is used to fund working capital and currently has a limit of Rs.300,000. Required: Analyse the liquidity of Monday limited from the entity’s own perspective. 2. List 5 stakeholders who may be interested in the financial statements of an entity and discuss 2 reasons as to why the aforesaid stakeholders may be interested in the financial statements
Question 1:
Following amounts have been Extracted from the records of Monday Limited.
|
Description |
2019 |
2018 |
|
|
- Rs. In 000- |
|
||
|
Sales |
32,875 |
31,390 |
|
|
Gross profit |
16,880 |
14,310 |
|
|
Profit for the year |
3,300 |
2,700 |
|
|
|
3,860 |
2,510 |
|
|
Account payable |
4,660 |
2,890 |
|
|
Inventory |
430 |
445 |
|
|
Cash at bank |
12 |
37 |
|
|
Bank overdraft |
280 |
40 |
|
Monday Limited secured a large new contract to supply goods to a large departmental store across a two year
period from 1st July 2019. Monday Limited normally offers wholesale customers 30 days’ credit, but department store would only agree to the contract with 90 days credit terms. The directors of Monday Limited agreed to this as they believed it was worth it to have their products placed with this department store. Monday Limited has an average 45 day credit from its suppliers. The bank overdraft is used to fund
Required:
- Analyse the liquidity of Monday limited from the entity’s own perspective.
2. List 5 stakeholders who may be interested in the financial statements of an entity and discuss 2 reasons as to why the aforesaid stakeholders may be interested in the financial statements
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