1. Explain to the sales director who has limited accounting knowledge: a) The relevance of any independent audit report on published financial statements to a credit manager. You should include both its advantages and disadvantages. (10 marks) b) The significance of the specific audit opinion in the audit report of OMLT in supporting your case for a reduced credit limit. (10 marks) Question 2 (20) 2. a) Calculate the liquidity ratios and the three elements of the working capital cycle for the two years. (10 marks) b) Compare and comment, in the light of the figures you have calculated whether or not the granting of credit is viable. (10 marks)