Analyze the change for kijani prospects ltd

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Reference no: EM132979420

Business Information Report (extract) on Kijani Prospects Ltd

The following data has been extracted from the business information report for Kijani prospects Ltd.

# Ratio Calculated                               2019                  2020

1 Current ratio                                2.5:1                2.2:1

2 Acid Test Ratio                               0.7:1              1.1:1

3 Recievables collection period             49.5 days      33.3 days

4 Payables Settlement period                  24.8 days     28.7 days

5 Inventory Turnover Rate                       80.7 days        63.5 days

Problem 1: Analyze the changes for each between 2019 and 2020, showing the potential impact upon Kijani Prospects Ltd in general and making reference to its management of its working capital in particular.

Reference no: EM132979420

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