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PLEASE PROVIDE AN ANSWER SOON Table Q5.2 - Financial ration information 31 December 2021 31 December 2020 Current Ratio 2.1 1.8 Quick ratio 0.8 1.1

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PLEASE PROVIDE AN ANSWER SOON

Table Q5.2 - Financial ration information 31 December 2021 31 December 2020 Current Ratio 2.1 1.8 Quick ratio 0.8 1.1 Debtors collection period 35 days 25 days Creditors payment period 30 days 27 days Inventory residence period 110 days 75 days Page 6 of 8 MN5207 Required: i. Assess the liquidity position and efficiency of Araliya (Pvt.) Limited using the above information. (05 marks) ii. Recommend methods to improve the liquidity position and efficiency level based on your answer to (i) above. (05 marks)

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