You have just been appointed as financial controller of KL, a privately owned entity operating in the fashion wholesale business. You have been asked to attend the forthcoming monthly management meeting and report on aspects of the entity's financial position. You are aware that during the last year the management team has been concerned about the liquidity of KL, and about its working capital management. The following information is available from the management accounts of KL for the year ended 30 September 2012: 6 months to 30 September 2012 6 months to 31 March 2012 R000 R000 Inventories at period end 1,050 550 Receivables at period 1,100 950 end Cash and cash 150 equivalents at period end Trade payables at period 1,400 800 end Short-term borrowings at 250 period end Revenue for the period 2,250 2,000 Cost of sales for the period 1,500 1,300 Required: Prepare a brief report that analyses the working capital and liquidity position of KL.