You have just been appointed as the financial controller of Sanchez & Gomez Limited, a privately owned entity operating in the fashion wholesale business. You have been asked to attend the forthcoming monthly management meeting and report on aspects of the entity’s financial position. You are aware that during the previous financial year the management team has been concerned about the liquidity of the company, and its working capital management. The following information is available from the management accounts for the year ended 30 December 2015: 6 months to 30 june 2014 "000" 6 months to 30 Dec 2014 “000” Inventories at period end 1050 550 Receivables at period end 1100 950 Cash and cash equivalents at period end ------ 150 Trade payables at period end 1400 800 Short term borrowings at period end 250 -------- Revenue for the period 2250 2000 Cost of sales for the period 1500 1300 Prepare a brief report that analyses the working capital and liquidity position of Sanchez & Gomez limited. Include the calculations for the relevant ratios, in your report.
You have just been appointed as the financial controller of Sanchez & Gomez Limited, a privately owned entity operating in the fashion wholesale business. You have been asked to attend the forthcoming monthly management meeting and report on aspects of the entity’s financial position. You are aware that during the previous financial year the management team has been concerned about the liquidity of the company, and its working capital management. The following information is available from the management accounts for the year ended 30 December 2015: 6 months to 30 june 2014 "000" 6 months to 30 Dec 2014 “000” Inventories at period end 1050 550 Receivables at period end 1100 950 Cash and cash equivalents at period end ------ 150 Trade payables at period end 1400 800 Short term borrowings at period end 250 -------- Revenue for the period 2250 2000 Cost of sales for the period 1500 1300 Prepare a brief report that analyses the working capital and liquidity position of Sanchez & Gomez limited. Include the calculations for the relevant ratios, in your report.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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You have just been appointed as the financial controller of Sanchez & Gomez Limited, a privately owned entity operating in the fashion wholesale business. You have been asked to attend the forthcoming monthly management meeting and report on aspects of the entity’s financial position. You are aware that during the previous financial year the management team has been concerned about the liquidity of the company, and its
The following information is available from the
| 6 months to 30 june 2014 "000" | 6 months to 30 Dec 2014 “000” | ||
| Inventories at period end | 1050 | 550 | |
| Receivables at period end | 1100 | 950 | |
| Cash and cash equivalents at period end | ------ | 150 | |
| Trade payables at period end | 1400 | 800 | |
| Short term borrowings at period end | 250 | -------- | |
| Revenue for the period | 2250 | 2000 | |
| Cost of sales for the period | 1500 | 1300 |
Prepare a brief report that analyses the working capital and liquidity position of Sanchez & Gomez limited. Include the calculations for the relevant ratios, in your report.
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