(a) Pretty Berhad is a major competitor to Nice Berhad. Both companies operate in the same industry. The summarised financial information of Pretty Berhad for the last 2 years are as follows: Summarised profit or loss for the year ended September 30 Revenue Cost of sales Gross profit Selling, distribution & admin expenses Interest expense Net profit before taxation Taxation Profit for the year Statement of financial position as at September 30 Assets Non-current assets: Intangible assets Tangible assets (carrying amount) Current assets Inventories Trade receivables Bank 2019 2018 RM'm RM'm 4,565 4.905 -2,950 -3,225 1,615 1,680 -1,095 -1,070 -95 -75 425 535 -225 -260 200 275 2019 2018 RM'm RM'm 240 200 1,080 1,030 1,320 1230 1,470 1,515 800 705 260 290 3,850 3,740 Equity and Liabilities Equity 2019 2018 Ordinary share capital 500 500 Retained earnings 1,730 1650 2,230 2150 Non-current liabilities Loan-notes 690 690 Current liabilities Trade payables 375 375 Other payables 555 525 3,850 3.740 Financial ratios of Pretty Berhad Ratios 2019 2018 Gross profit margin 35.40% 34.30% ROCE 17.80% 21.5 Net profit margin 11.40% 12.40% Asset turnover Gearing ratio Debt/equity ratio Interest cover Current ratio Quick ratio 1.56times 1.73 times 23.60% 24.30% 30.90% 32% 5.5 8.1 2.7 2.8 1.1 1.1 Receivable payment period (days) Inventory tumover period (days) 64 52 182 171 46 42 Payable tumover period (days) Pretty Berhad declared dividend of RM120 million each in years 2018 and 2019. (b) Required: As the Chief Accountant of Nice Berhad, write a report to your company's Finance Director evaluating the performance of Pretty Berhad which is your company's competitor. (15 marks) Image Berhad imports second-hand commercial vans for resale in Malaysia. The list price on 1 unit of van was RM200,000 with a trade discount of 6%. The import duty and insurance premium were 9% and 3% on the net purchase price. The company incurred on each van transportation costs of RM1,000 and processing costs of RM600 respectively. At the end of its financial year, the company has 6 units of the van in its showroom. The selling price per unit less cost to sell was RM260,000. Required: Determine the closing inventory for the presentation in the financial statements at the end of the financial year based on MFRS 102 Inventory. (10 marks)