a) Calculate the following ratios for years 2019 and 2020. Jelita Berhad plans to introduce a new product which requires the firm to raise RM50 million. The firm decided to borrow from Berjaya Bank for the required fund. As a financial manager you have been asked by the top management to prepare a two-year financial analysis report as requested by the bank. Current ratio Quick ratio Debt ratio M Inventory turnover Times interest earned vi) Fixed asset turnover Vil) Net profit margin vil) Return on equity JELITA BERHAD BALANCE SHEET AS AT 31 DECEMBER 2019 AND 2020 2019 (RM'0001 2020 (RM 000) ASSETS Cash 15,000 30,000 Marketable securities 8,000 16,000 Accounts receivable 42,000 34.000 Inventories 50,000 60,000 Fixed assets 285,000 270,000 Total Assets 400,000 410,000 b) Summarise the performance of the firm based on the relevant profitability and debt ratios in part (a). LIABILITIES AND EQUITY Accounts payable Notes payable Accruals Long-term debt Common shares Retained earnings Total Liabilities and Equity 48,000 16,000 6,000 160,000 120,000 50,000 Explain the weaknesses of financial ratios analysis in evaluating a company's performance. 50,000 10,000 5,000 150,000 120,000 75,000 410,000 400.000 JELITA BERHAD INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2019 AND 2020 Sales (credit) Less: Cost of goods sold Gross profit Less: General expenses Operating profit Interest expense Net profit before taxes Taxes Net profit after taxes 2019 RM1000 450,000 360,000 90,000 46,000 44.000 10,000 34.000 9,000 25,000 2020 (RMP0001 500,000 460,000 140,000 50,000 80,000 8,000 72,000 18,000 54,000