NEEDED WITHIN 15 MINUTES WITH FULL EXPLANATION

Question 1 The CEO of Skinny Ltd, Mr Skinny has come to see you because he heard you were doing AF208. He indicates that his firm is under financial stress for several months. He can't sleep and has stress all the time. The doctor has told him that he now has high blood pressure. He wants your advice on how to deal with cash flow problems his company is facing. His banks have refused any further loans and no one else will advance any loan. He has presented you with an extract of his recent balance sheet below. State of Financial Position of Skinny Ltd As at 29th November 2021 Assets $ Cash $2 000 Debtors $30 000 Inventory $46 000 Vehicles $38 000 Plant and Equipment $29 000 Total Assets $145 000 Liabilities Overdraft $6 500 Bank loan $15 600 Creditors $8 500 Total Liabilities $30 600 Net Assets $114 400 Equity Shareholder's Funds $100 000 Retained earnings $14 400 $114 400 Required: Outline five actions that Skinny can take to improve his cash flow. (15 marks)