38.

Bentara Bhd
Statement of Financial Position for 2018
(RM in millions)
Current assets		Current Liabilities
Cash	98	Account payable	344
Account Receivables	188	Notes payable	196
Inventory	422
		Long term debt	457
Fixed assets
Net plant and equipment	2,880	Common stock	550
		Retained earnings	2,041
Total Assets	3,588	Total liabilities and owner's equity	3,588

Bentara Bhd
Statement of Profit and Loss for 2018
(RM in millions)
Sales	2,311
Cost of goods sold	1,344
Depreciation	276
Earnings before interest and taxes	691
Interest paid	141
Earnings before taxes	550
Taxes (34%)	187
Net income	363

Based on the financial statement, calculate the current ratio.

Select one:

a. 1.4 x

b. 1.5 x

c. 1.2 x

d. 1.3 x

40.

Bentara Bhd
Statement of Financial Position for 2018
(RM in millions)
Current assets		Current Liabilities
Cash	98	Account payable	344
Account Receivables	188	Notes payable	196
Inventory	422
		Long term debt	457
Fixed assets
Net plant and equipment	2,880	Common stock	550
		Retained earnings	2,041
Total Assets	3,588	Total liabilities and owner's equity	3,588

Bentara Bhd
Statement of Profit and Loss for 2018
(RM in millions)
Sales	2,311
Cost of goods sold	1,344
Depreciation	276
Earnings before interest and taxes	691
Interest paid	141
Earnings before taxes	550
Taxes (34%)	187
Net income	363

Based on the financial statement, calculate the return on equity.

Select one:

a. 17%

b. 16%

c. 14%

d. 15%

39.

Which of the following industries has the lowest average inventory ratio?

Select one:

a. Sports equipment

b. Automobile dealerships

c. Supermarkets

d. Real-estate companies

53.

A finance manager is planning to invest in a new project. The timing and the expected cashflows of Project AB and project XY are as follows:

YEAR	PROJECT AB	PROJECT XY
1	-	RM10,000
2	RM25,000	RM15,000

Choose the correct statement:

Select one:

a. Project AB is preferable to project XY

b. Project XY is preferable since the cash is received earlier and can be reinvested to generate more returns

c. None of the above

d. Both projects are equivalent where both earn RM25,000 within two years of its life