196 Financial Management for Beginners Question 2 Sonata has won a lottery worth RM30,000. She wishes to purchase an orth RM30,000. She wishes to purchase an annuity that would provide her with a steady income over the next 15 years. Currently, the local banks over the next 15 years. Currently, the local banks and financial institutions are paying 8% compound interest on an annual basis. If she were to deposit heron erest on an annual basis. If she were to deposit her funds, what year-end equal dollar amount would she be able to withdraw annually that she would have a zero ad withdrawal 15 years from now? Question 3 You are planning to retire in 10 years' time and buy a condominium at the Cherating seaside. Presently, the condominium costs RM200,000 and is expected to increase in value each year at the rate of 790. Suppose you can earn 12% annually on your investments, how much must you invest at the end of each of the next 10 years to be able to buy your dream condominium when you retire? Chapter 3.1x 30 days Industry averages: Current ratio Average collection period Inventory turnover ratio Total assets turnover Debt ratio Debt-to-equity ratio Times interest earned Net profit margin Return on assets Return on equity 1.5x 45% 82% 3x 7% 10.5% 19% Required: Compute the above ratios for Lucrative Sdn Bhd for 2012 and 2013 b. Comment on the firm's asset management ratios, leverage position and profitability. V c Based on Du Pont analysis, identify the factors that contribute to the firm's ROE. d. Give three suggestions on how to improve the firm's profitability. Question 9 Siput Enterprise has current assets of RM 11,400, inventories of RM4,000 and a current ratio of 2.6. is Siput's acid-test ratio? Question 10 Smart Corporation has an average collection period of 74 days. What is the accounts receivable for Smart Corporation? Use a 360-day year