BTY Enterprises, was established some three years ago to manufacture leather covers for laptops. The turnover for the last financial year increased and was in the range of 2 million Kwacha. The daily management of BTY Enterprises rested in Betty and Golibaba. Golibaba was the sales and marketing director whereas Betty was production manager. Both of these directors were proficient in their areas of expertise and did not find any justification in employing a full time Finance Manager. They however decided to engage an individual consultant, named Lio, to review the finances of the enterprise. Lio first stated by touring the premises as to familise herself of the company surrounding and the offices and was very impressed with what she saw. While she was touring the premises, she kept on writing short notes on her newly acquired i-pad. However, before he could finalise her report, she was asked to proceed urgently to Italy to pursue a PhD and fearing that she might forfeit the Scholarship she was given by the Italian Government through the Ministry of Foreign Affairs, she decided to just hand over the i-pad to Golibaba with the following notes:

i. Obtain Statement of Financial Affairs! (As below)

ii. Worried about investment? Need to determine whether there was any policy regarding investment and explore available options1

iii. Determine working capital

iv. Took Much Stock balances. v. Liquidity to be investigated. vi. Debtors policy?

Golibaba then approached another consultant, Quicker and Partners consultants for advice and you are the Director of Quicker and Partners ltd asked to report on BTY Enterprises.

REQUIRED:

You are required to prepare a report for BTY Enterprises which:

i. Examines the liquidity of the Company 10 Marks

ii. Discusses the management of working capital of BTY enterprises 5Marks

iii. Recommends improvements which can be made to financial management within the

BTY Enterprises- Statement of Financial Affairs as at 31st March BTY Enterprises- Statement of Financial Affairs as at 31st March