CashFlow Ltd has prepared its accounts for the year ended 31 December 2024. The balance sheet shows assets of £500,000 and liabilities of £300,000, giving net assets of £200,000. However, the company is experiencing significant difficulties in paying its debts as they fall due. Several creditors have issued proceedings for unpaid invoices, and the company has had to negotiate extended payment terms with suppliers. The directors believe the company is solvent because it has positive net assets.
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