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Sizwe Limited is a computer accessories company. Its main customers are the various government departments. In the last year it was awarded a good number
Sizwe Limited is a computer accessories company. Its main customers are the various government departments. In the last year it was awarded a good number of high value tenders by the various government departments. The company's owners were very pleased with these developments. However it has come to their attention that in the last two months they have not been able to pay their workers salaries and also to pay their component suppliers on time. This has resulted in some of their suppliers threatening to withdraw their services. Their workers on the other hand have taken legal action against the company. The directors of the company have approached you as a finance expert to ascertain where the problem is because they had expected that with the increase in the number of tenders their company should be operating well. On inspection of the company's records you discover that the company has no cash in their bank accounts to pay workers and suppliers even though a lot of invoices from the various government departments are outstanding. Advise the company on how this situation can be remedied. (25 Marks)
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