1. 2. @N. Statement of Profits or Loss and Other Comprehensive Income for the year ended 31 December 2020 (extract) 3. Revenue Cost of sales Gross Profits Other revenues Administrative expenses Selling and Distribution expenses Finance Cost Taxation Net Profits Non-Current Assets Current Assets Statement of Financial Position as at 31 December 2020 (extract) Inventories Trade Receivables Banks Total Ordinary Shares Retained Earnings Non-Current Liabilities Additional information: Current Liabilities Trade Payables Accruals Total All sales were done on credit terms. 2020 RM'000 The opening inventory for 2020 was RM290,000. Trade Receivables on 1 January 2020 was RM180,000. 826.00 -395.00 431.00 23.00 -114.00 -32.00 -22.00 -68.00 218.00 2020 (RM'000) 2,600 210 180 120 3,110 1,500 142 700 400 368 3,110 Required: The management of Cantik Sdn Bhd is evaluating the financial performance of the company by comparing the ratios for two consecutive years. Compute the following ratios for year 2020: a. b. C. i. ii. iv. V. vi. Net Profit Margin Inventory Turnover Ratio Trade Receivables Collection Period (assume 360 days in a year) Debt Ratio i. ii. iii. Times interest earn Quick ratio Below is the performance of the company for the year 2021. Net profit margin Inventory turnover ratio Average collection period Debt ratio Times interest earn Quick ratio 26.48% 1.75 times 88.5 days 38% 16 times 0.64 Based on the answers in (a), comment on the type of ratios below. The comment should consist of trend (increase or decrease), interpretation and brief analysis. Profitability Management Efficiency Leverage (6 marks) (7 marks) State two (2) recommendation that can be done by Diamond Sdn Bhd to increase its quick ratio. (2 mark)