(a)

Up to 1 mark per explanation of why this could indicate going concern problems, if just identify indicator
then maximum of ½ mark, overall maximum of 5 indicators.
– Reduction in sales from main customers
– Withdrawal of credit from some suppliers
– Potential legal action from supplier
– Low current ratio
– Negative monthly cash flows
– Loan of $2·3 million due for repayment within one year
– Possible change in legislation, key product could become obsolete 
5