1))For the years ended December 31, 2018 and 2019 of your analysis, assume all sales are on credit and then compute the following:
(a) collection period,
(b) accounts receivable turnover,
(c) inventory turnover, and
(d) days' sales in inventory.
(e) Based on your estimates, comment on the changes in the ratios from 2018 to 2019 year by drawing conclusion regarding efficiency in managing inventory and in collecting receivables (Note: Comment not more than 10 lines).
2))Provide your recommendations for improving the financial condition of your company. (Note: Comment not more than 10 lines).
Statements of Financial Position As at 31 December 2019 Group Note 2019 RM 2018 RM Company 2019 RM 2018 RM 79,397,036 1,463,777 75,679,374 210,060 7,160 5,306 Assets Non-current assets Property, plant and equipment Investment properties Investment in subsidiaries Right-of-use assets Deferred tax assets Prepayments for acquisition of property, plant and equipment 11 12 14 13(a) 19 62,286,703 5,816,932 165,870 62,286,703 25,625 11,272 72,272 11,272 3,025,000 86,843,615 78,986,706 62,330,760 62,303,281 Current assets Inventories Trade and other receivables Prepayments Cash and bank balances 15 16 24,297,063 36,833,962 709,228 85,521,945 25,414,315 35,166,990 576,123 96,320,271 215,911 6,600 37,769,940 217,802 6,600 37,947,645 17 147,362,198 157,477,699 37,992,451 38,172,047 Total assets 234,205,813 236,464,405 100,323,211 100,475,328 49,318,635 Equity and liabilities Current liabilities Trade and other payables Lease liabilities Contract liabilities Income tax payable Dividend payable 1,525,406 18 13(b) 4 1,495,786 25,625 53,067,150 238,611 2,907,536 2,962,163 16,000,000 2,513,143 4,449,921 16,000,000 45,087 16,000,000 51,087 16,000,000 75, 175,460 72,281,699 17,566,498 17,576,493 Net current assets 72,186,738 85,196,000 20,425,953 20,595,554 Non-current liabilities Deferred tax labilities Lease liabilities 5,912,213 19 13(b) 7,088,825 140,546 Total liabilities 82,404,831 78,193,912 17,566,498 17,576,493 Equity attributable to owners of the parent Share capital Retained earnings 20 21 80,000,000 71,800,982 80,000,000 78,270,493 80,000,000 2,756,713 80,000,000 2,898,835 Total equity 151,800,982 158,270,493 82,756,713 82,898,835 Total equity and liabilities 234,205,813 236,464,405 100,323,211 100,475,328 Statements of Comprehensive Income For the financial year ended 31 December 2019 Group Note 2019 RM 2018 RM Revenue from contracts with customer Cost of sales 4 5 309,539,034 (204,250,655) 307,372,915 (197,610,952) 105,288,379 109,761,963 Gross profit Other items of income Interest income Other income 2,732,028 1,313,092 3,104,021 1.278,294 Other items of expense Administrative expenses Selling and marketing expenses Finance cost (19,724,969) (33,466,298) (21,613) (19,825,762) (36,539,886) Profit before tax Income tax expense 6 9 56,120.619 (14,590,130) 57,778,630 (14,819,252) Profit net of tax, representing total comprehensive income for the year 41,530,489 42,959,378 Profit net of tax attributable to: Owners of the parent 41,530,489 42,959,378 Total comprehensive income attributable to: Owners of the parent 41,530,489 42,959,378 Earnings per share attributable to owners of the parent (sen per share): Basic 10 5.19 5.37 Diluted 10 5.19 5.37 Annual Report 2018 [ Statements of Financial Position ] As at 31 December 2018 Group Company Note 2018 RM 2017 RM 2018 RM 2017 RM 5,306 5.415 75,679,374 210,060 77 688,993 211,426 Assets Non-current assets Property, plant and equipment Investment properties Investment in subsidiaries Deferred tax assets Prepayments for acquisition of property, plant and equipment 11 12 13 18 62,286.703 11,272 62,286.703 10,406 72,272 39,406 3,025,000 78,986,706 77.939,825 62,303,281 62,302,524 Current assets Inventories Trade and other receivables Prepayments Cash and bank balances 14 15 25,414,315 35,166,990 576,123 96,320,271 24,857,496 40,535,186 722.527 99.026,217 217,802 6,600 37,947,645 299,483 6.600 39,727,218 16 157,477,699 165,141,426 38,172,047 40,033,301 Total assets 236,464,405 243,081,251 100,475,328 102,335,825 53,096,558 1,525,406 1,453,980 Equity and liabilities Current liabilities Trade and other payables Contract liabilities Income tax payable Dividend payable 17 4 49,318,635 2,513,143 4,449,921 16,000,000 4,122,629 16,000,000 51,087 16,000,000 60,780 16.000.000 72,281,699 73.219.187 17,576,493 17,514,760 85,196,000 Net current assets 91,922,239 20,595,554 22,518,541 Non-current liability Deferred tax liabilities 18 5,912,213 6,344,397 Total liabilities 78,193,912 79,563,584 17,576,493 17,514,760 Equity attributable to owners of the parent Share capital Retained earnings 19 20 80,000,000 78,270,493 80,000,000 83,517 667 80,000,000 2,898,835 80,000,000 4,821,065 Total equity 158,270,493 163,517,667 82,898,835 84,821,065 Total equity and liabilities 236,464,405 243,081,251 100,475,328 102,335,825 Annual Report 2018 [ Statements of Comprehensive Income ] For the financial year ended 31 December 2018 Group Note 2018 RM 2017 RM Revenue from contracts with customer Cost of sales 4 5 307,372,915 (197,610,952) 299,665,032 (186,463,785) 109,761,963 113,201,247 Gross profit Other items of income Interest income Other income 3,104,021 1,278,294 3,363,884 1,080,149 Other items of expense Administrative expenses Selling and marketing expenses (19,825,762) (36,539,886) (20,410,273) (37,848,580) Profit before tax Income tax expense 6 9 57,778,630 (14,819,252) 59,386,427 (14,939,481) Profit net of tax, representing total comprehensive income for the year 42,959,378 44,446,946 Profit net of tax attributable to: Owners of the parent 42,959,378 44.446,946 Total comprehensive income attributable to: Owners of the parent 42,959,378 44,446,946 Earnings per share attributable owners of the parent (sen per share): Basic 10 5.37 5.56 Diluted 10 5.37 5.56
