Question 5b
Marking Guide
1/2 mark per indicator and up to 1 mark per description of why this could indicate going concern problems
for medimade:
– decline in demand
– dependent on two products
– lack of investment in future product development
– unable to recruit staff
– inability to obtain funding
– failing to pay payables on time
– withdrawal of credit terms
– overdraft facility due for renewal
– cash flow forecast shows worsening position
maximum marks8