Question No. 07 The Directors of Needy PLC are proposing to declare a dividend payment to its shareholders. However, the directors are unsure whether the company would pass the solvency test after the said dividend is declared. They have approached you with an extract of the statement of financial position of the company which shows the position after accounting for the proposed dividend Statement of Financial Position of Needy PLC as at 31/12/2018. Property, Plant & Equipment Current Assets Stated Capital Retained Earnings Profit for the year Non-current liabilities Current liabilities 50.000 30,000 80,000 40,000 6,000 4,000 10,000 10,000 20,000 80,000 oo ne ne 6 *Presume that the company can pay its debts as they fall due, i. You are required to perform the Solvency Test as per the provisions of the Companies Act on the data given on the Statement of Financial Position and inform the Directors as to whether the company can satisfy the Solvency Test, if proposed dividend is declared. Balance sheet test absen (09 Marks) Solvency test