ACC 1101 FINANCIAL ACCOUNTING AND REPORTING 1 SEM 2 2021/22 Assignment Presented here are summarized data from Statement of Financial Position and Statement of Profit and Loss and other comprehensive income of Tanggang Berhad: TANGGANG BERHAD STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER (in millions) 2020 2019 RM Current assets Other non-current assets Current liabilities 562 803 710 Long term liabilities. 1,521 982 827 Shareholders' equity 1,007 1,026 918 TANGGANG BERHAD STATEMENT OF PROFIT OR LOSS AND OTHER COMPHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER (in millions) 2021 2020 Revenue and expense data: RM RM 3,050 2,913 296 310 Net sales (credit) Operating income Interest expense Net Income 84 65 192 187 Other data: RM RM Average number of ordinary shares outstanding 41,300,000 46,700,000 Total dividends paid 50,000,000 52,300,000 2021 RM 677 2,413 3,090 RM 891 1,920 2,811 RM RM 736 1,719 2,455 RM Required: 1. Compute the following ratios for the year 2020 and 2021. a. Return on total assets b. Return on total equity c. Earnings per share d. Working capital e. Current ratio f. Number of days sales in receivables, assuming average accounts receivable as at 31 December 2021 totaled RM309 million and as at 31 December 2020 totaled RM200 million. g. Debt ratio h. Time interest earned (19 marks) 2. Evaluate the profitability, liquidity and solvency of Tanggang Berhad and state your opinion about its suitability as an investment for a young professional with funds to invest in ordinary shares. (6 marks) [TOTAL: 25 MARKS] 2