Please assist

w E R T Y U S D F G H J K L Delete C V B N Enter M Shill AIE Curi SUMMATIVE ASSESSMENT (ASSIGNMENT) - 2020 FIRST SEMESTER Greenfields (Pty) Ltd is a retailer of animal feeds, fertilisers, pesonwide as well as to other The company sells 60% of its products on credit and its credit terms to its customers are 30 days. The company purchases 70% of its products on credit from its suppliers and the The owners of the company are quite concerned about the liquidity position of the company. The accountant collected data and prepared the following table with information relating to the liquidity ratios and activity ratios for the company and the industry in which it operates O Question 1 (18) Agriculture Greenfields industry Current ratio 4.7 Quick ratio 1.8 3.5 Inventory turnover ratio 5.2 8.4 Average collection period Average payment period 33 days Page 119 - 121 Chapter 3 Page 71-76 FMA 101 FINANCIAL MANAGEMENT FRAGT Finand Manag related agricultural products. The company sells its products SADEC countries. and a wide range of suppliers' settlement agreement is 60 days. Financial ratio ER 75 days 45 days 55 days Gae You have been contracted by the managing director of the company to help her to diagnose any liquidity problems the company may have and to make recommendations to maintain adequate liquidity. Required: 1.1. is current inventory management affecting the company's liquidity? If it is, then present three possible recommendations relating to the management of inventory to the managing director to address the liquidity problem. (7) 1.2 Is current trade receivables management affecting the company's liquidity? If it is, then present three recommendations relating to the management of trade receivables to the managing director to address the liquidity problem. (7) 1.3. Is current trade payables management affecting the company's liquidity? If it is, then present two recommendations relating to the management of trade payables to the managing director to address the liquidity problem. Question 2 [25] Jenny is the owner of The Bride Boutique. The boutique sells well-known brands of wedding dresses and related products. Jenny recently attended a short course on financial management for SMEs. One of the topics covered in the programme was cash budgets. Jenny wants to implement cash budgeting for the boutique and she prepared a cash budget for the period April - June 2020. However, she is still concerned that she may not have prepared the cash budget correctly and requested your assistance to help her prepare the cash budget. At a meeting between Jenny and yourself, she provided you with the following information: murhacer for the period February - June 2020