[EMAMDEE]

Passed with Lower Second Class. Thank you Trephena and my mentor.

[EMAMDEE]

For Overtrading question 1 i found it easy..

I work out the ratios- of the co and compare with industry ratios- then made a comment upon revenue, being decreased-probably the co invested in non current assets that generates the sales but with the long term loan being the same at $3000 for the two years.

and also comment upon profitability increase < increase in sales

Increase in terms of trade of customers, quick ratio- too small- too much cash tied in inventory. Too much Overdraft- co face liquidity problem- not able to pay off liabilities..

There is a reduction in net working captial- that s mean undercapitalised /overtrading

to overcome the problem- i talked about issue of long term loan, invoice discounting, review terms of trade, make necessary action to sell inventory quickly to generate cash. hopefully could get maximum marks..

i found question 5 very difficult me.. else for the no business valuation also was ok and foreign exchange one and for the wacc, got stuck in for the second wacc..

mcqs were very tricky..

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