Question 1: In the last board meeting, the directors of Batfish Limited have decided to expand its businesses to overseas. Such as expansions required a higher liquidity in cash flow. Therefore, Batfish Limited planned to ask its suppliers to revise their credit policies to allow Batfish Limited to have a credit term of 60 days, instead of 30 days. The major supplier, Dogfish Limited, asked Batfish Limited to provide a set of financial statements (the statement of financial position, statement of profit or loss and other comprehensive income and statement of cash flow) for the year ended December 31, 2015 as a requirement for the review of credit terms.
Advise whether Dogfish Limited should extend the credit term (from 30 days to 60 days) for Batfish Limited.