Reference no: EM133186625

Question - You and the person in charge of the financial area invite you to a management meeting, whose objective is to address the liquidity and financial solvency of the company for June 2022, for which the following integration of accounts is passed to you today (May 14, 2022):

a) In cash and banks they have Q80,000 (the minimum balance required in cash to maintain liquidity during the month is Q50,000);

b) In documents receivable, derived from sales to clients, it normally maintains a balance of Q320,000; 70% must be collected at the end of May and the rest in the month of June; Y

c) In merchandise available for sale, Q 580,000 are kept on average, which have a rotation of 45 days on average. 90% of its sales are on credit, which is evidenced in item b. d) Property, plant and equipment Q 850,000

Liabilities at the same date have the following conditions:

a) 60% of the merchandise is owed, of which, if the debt is paid before June 15, a 5% discount may be received for prompt payment.

b) The payroll of company employees, to be paid this end of the month, amounts to Q110,000 of salaries and Q6,000 of incentive bonus. On salaries, the obligation of IGSS fees to be paid later than June 20, 2022 is also generated.

c) You have a long-term bank loan for Q360,000 and each month you have to pay Q3,000 of the principal plus 12% annual interest on balances. The payment date is the 22nd of each month, so the interest payable for the following month must always be recorded.

d) The basic services of each month are semi-fixed, because they are normally maintained as follows: Electricity Q530.00 Telephony Q2,400.

With the above information:

1. Prepare an analysis of the liquidity and solvency of the company (Conclusions and recommendations that it deems appropriate on the financial information that the company has).

2. Determine the discount rate offered by the prompt payment discount provider.