Ararat Sdn Bhd

Statement of Financial Position as at 30^th June 2022

	RM		RM
Cash	120,000	Accounts Payable	7,000
Accounts Receivable	14,000	Notes Payable	13,000
Inventories	110,000	Current Liabilities
Current Assets	244,000	Long-term Loan	220,000
Plant & Equipment	310,000	Owners Equity
Less:Acc. Depr.	(34,000)	Ordinary Share	300,000
Net Fixed Assets	240,000	Preference Share	140,000
		Retained Earnings	80,000
		Total Owners Equity	520,000
		Total Liabilities and
Total Assets	760,000	Owners Equity	760,000

Ararat Sdn Bhd

Statement of Comprehensive Income for the year ended 30^th June 2022

	RM
Sales	1,400,000
Cost of Goods Sold	(800,000)
Gross Profit	600,000
Operating Income	100,000
Operating Expenses	(500,000)
EBIT	200,000
Interest Expense	(12,000)
Income Before Taxes	188,000
Taxes (30%)	(56,400)
Net Income	131,600

Calculate the following financial ratios of the company:

i. Acid Test Ratio. (2 marks)

ii. Net Profit Margin. (2 marks)

iii. Debt Ratio. (2 marks)

iv. Debt to Equity Ratio. (2 marks)

v. Time Interest Earned. (2 marks)