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1. The following financial statement as at 31 December 2015 has been extracted from the books of Lola Berhad. Lola Berhad. Statement of Comprehensive Income

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1. The following financial statement as at 31 December 2015 has been extracted from the books of Lola Berhad. Lola Berhad. Statement of Comprehensive Income for the year ended 31 December 2015 2015 2015 1,530,500 (32,500) Less: Sales return 1,498,000 (1,043,000) 455,000 Less: Cost of goods sold Gross profit Add: Other revenue Less: Operating expenses Sales expenses 8,500 Administrative expenses 191,00 0 104,00 0 6,000 Other expenses Profit before tax Less: Taxation (301,000) 162,500 (71,500) Profit after tax 91,000 Lola Berhad Statement of Financial Position as at 31 December 2015 2015 Non-current Assets: Long-term investment Building and Equipment (net) Intangible assets 95,000 444,500 50,000 589,500 Current Assets: Cash Marketable securities Accounts receivable Inventory Expenses pre-payment 90,500 75,000 115,000 264,000 5,500 550,000 Total Asset 1,139,500 6% Preference shares Ordinary shares at RMIO each Retained earnings 150,000 500,000 179,500 829,500 Non-current liability 100,000 Current liability: Accounts payable Total Owner's Equity and Liability 210,000 1,139,500 Current ratio 42% Acid test ratio 26.496 Inventory tumover Industry Average 3.5 Gearing ratio time 2.8 Return on time capital employed 7 Net profit time margin 15 Price learnings ratio days 40 Earnings per days share 3% Debtor ratio RMI.IO Creditor ratio RM1.86 Required: a. Calculate the following ratios for Lola Berhad. You are required to show the ratio formula and figures used clearly. Assume the market price of the company's share on 31 December 2015 was RM2.20 per share. All calculations are to be rounded off to two decimal points. (Note: use 365 days per year). Net profit margin i. Return on capital employed. iii. Gearing ratio iv. Inventory turnover. v.Creditors ratio. vi. Debtors ratio. vii. Current ratio. viii. Acid test ratio. ix. Earnings per share. Price learnings ratio. (10 marks) X. b. Based on (a), analize. Lola Berhad liquidity, profitability and efficiency, capital structure and shareholder ratio as compare to the industry average. (15 marks)

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