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The following activities relate to preparation of annual financial statements of M-ltd
No Activity Duration (Weeks) Immediately Preceding
A. Check outstanding purchase invoices 2 –
B. Close each cash book & post to general ledger 2 –
C. Complete sales invoices 3 –
D. Check accrued salaries & wages 1 –
E. Count & verify stock levels 4 –
F. Calculate stock valuation 2 E
G. Close purchase ledger & post to general ledger 1 A
H. Close sales ledger & post to general ledger 1 C
I. Post salaries & wages to general ledger 1 D
J. Close General ledger 3 B,G,H,I
K. Prepare trial balance 3 J
L. Apply closing adjustments & trial balance 2 F,K
M. Re-open general ledger for new period 1 N
N. Prepare final accounts 6 L
O. Submit final accounts to board for approval 1 NRequired
a .Draw a network to represent the activities & insert the latest event times (6mks)
b. Assuming the activities start at first week of January, what is the earliest date the
activities can be presented to the board? (4marks)
c. The final accounts must be approved by end of week 13, to achieve this activities A,B
& C can all be completed by end of December while verification of stock, level E could
be done in only 2-weeks if additional labour is available.
d. Explain how management may use network system in design of multi stage production
process.
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