Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Based on the following trial balance, answer the following questions: Hyten Enterprise Trial Balance as at 31/12/2021 Accounts Dr. Cr. (RM) (RM) Cash Capital

image text in transcribed

Based on the following trial balance, answer the following questions: Hyten Enterprise Trial Balance as at 31/12/2021 Accounts Dr. Cr. (RM) (RM) Cash Capital Fumiture Office Equipment Accounts payables Inventory Sales 7,700 5,000 31,000 18,400 6,570 5,800 89.000 Accounts receivables 7,900 Depreciation: Furniture 100 Depreciation Equipment 200 Accumulated depreciation Furniture 100 Accumulated depreciation Equipment 200 Salary 2,000 Utities 300 Accrued interest 130 Selling and distribution expenses 5,000 Advertisement 5,000 Cost of goods sold 17,000 General expenses 600 Total 101,000 101,000 Other information: 1) The closing inventory for 31/12/2021 are RM5,000 2) Other information: Credit sales is 20% of total sales 3) Purchases is equal to Ending inventory plus the Cost of goods sold and minus the Beginning inventory. Based on financial year 2021, analyse the following: a) Net working capital Current assets-cument liability Interpret your result [2 marks] [1 mark] b) Current ratio = Cument assets/Current abilities [2 marks] Interpret your results [1 mark] c) Quick ratio = [Current assets (inventory other less liquid items Cument liabilities [2 marks] Interpret your results [1 mark] d) Inventory turnover Cost of Goods sold / Average inventory Interpret your results [2 marks] [1 mark] e) Accounts Receivable turnover = Credit sales/Accounts Receivable [2 marks] Interpret your results Accounts payable turnover Credit purchases/Accounts Payable [1 mark] n (All purchases are on credit) (2.5 marks] Interpret your results [1 mark 9) What is the cash conversion cycle of the company? [1.5 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management and Cost Accounting

Authors: Colin Drury

8th edition

978-1408041802, 1408041804, 978-1408048566, 1408048566, 978-1408093887

More Books

Students also viewed these Accounting questions