1. Comment on the short-term liquidity, longer term solvency and business performance of Boat Builders based on your analysis of the ratios. Remember that you should be analysing the modified financial statements that you generated as part of case study 1.

2. Comment on what your analysis of the cash flow budget has revealed.

Overall, do you see the cash flow budget as being pessimistic, optimistic or realistic?

Do you think that Boat Builders' request for an increase in borrowing facilities is justified?

In your opinion, will the business be able to reduce its overdraft to below $110 000 by July 2004?