=+The company prepares its accounts to 30 June each year. Operating results and statements of financial position to 30 June 1992 and 1993 are shown in Appendix 1. The year to 30 June 1993 was the first year since start-up that the company experienced a fall in demand, caused by the slump in demand for houses during the year. :

The company’s bank manager has been receiving the monthly accounts since December 1992, when the overdraft limit of €400,000 was breached. He has asked to see the years accounts to 30 June 1993 by the end of July in order to assess the overall financial position of the company.