The following are extracted from the statements of financial position as at 31 March 2017 and 31

Question:

The following are extracted from the statements of financial position as at 31 March 2017 and 31 March 2018 of Glebe Ltd:


Required:
(a) Calculate for each of the two years two ratios that indicate the liquidity position of the company.
(b) (i) From the information given, give reasons for the changes which have occurred in the working capital.
(ii) What other information regarding the current assets and current liabilities would you consider necessary to assess the ability of the business to continue in operation?
(c) Discuss any other information available from a statement of financial position that may affect an assessment of the liquidity of a business.

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