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31 May, 17:46

Envisage senior management asks you to create a quick report presenting the financial data they are most interested in. What would you include in that report?

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  1. 31 May, 18:54
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    The report must include the profitability, liquidity and cash flow reports

    Explanation:

    Senior Management are interested in knowing these three areas.

    The profitability report must include the total sales for the period, the gross profit, operating profit (profit before tax and depreciation) and net profit.

    The liquidity report must contain the total non-current assets, current assets, non-current liabilities and current liabilities. It must also include the current ratio, quick ratio, cash ratio and solvency ratio.

    For cash flow, it must contain net cash flow from operating activities,

    net cash flow from investing activities and net cash flow from financing activities
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