A The following are extracts from the balance sheets as at 31 March \(19 \mathrm{X} 4\) and \(31 \mathrm{March}\) 19X5 of Glebe Ltd:

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(a) Calculate for each of the two years two ratios that indicate the liquidity position of the company.

(b) (i) From the information given, give reasons for the changes which have occurred in the working capital.
(ii) What other information regarding the current assets and current liabilities would you consider necessary to assess the ability of the business to continue in operation?

(c) Discuss any other information available from a balance sheet that may affect an assessment of the liquidity of a business.

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31 March 19X4 31 March 19XS Current assets Stocks 20,000 25,000 Trade debtors 10,000 17,000 Cash 5,000 3,000 35,000 45,000 Less Current liabilities Trade creditors 12,000 16,000 Proposed dividends 6,000 5,000 Bank overdraft 7,000 29,000 25,000 50,000 10,000 (5,000)