Below is the financial statement of MORNING GLORY GROCERS SDN BHD for the year ended 31 December 2021. INCOME STATEMENT (RM in thousands) RM RM Net Sales Revenues Cost of Goods Sold Gross Profit Operating Expenses: Selling & Marketing Administrative Total Operating Expenses Operating Income Other Income / Expenses Earnings before interest and tax (EBIT) Interest Expenses: Interest on Loans Interest on Mortgage Bonds Total Interest Expenses Earnings Before Taxes Federal & State Taxes @ 40% NET INCOME 4,320 4,705 150 280 89,560 (38,875) 50,685 (9,025) 41,660 210 41,870 (430) 41,440 (12,576) 28,864 FIN 1013 PRINCIPLES OF FINANCE_2 __________________________________________________________________________________________ Page 2 of 8 BALANCE SHEET (RM in thousand) RM RM ASSETS Current Assets Cash at Bank Accounts Receivables Inventories Total Current Assets Long-Term Assets Property & Equipment at cost Accumulated Depreciation Total Long-Term Assets TOTAL ASSETS LIABILITIES Current Liabilities Accounts Payable Notes Payable @12% Taxes payable Other Current Liabilities Total Current Liabilities Long-term Liabilities Mortgage Bonds @ 9.58% Total long-term Liabilities TOTAL LIABILITIES EQUITY Common Stock Paid in Capital in excess of par value Retained earnings TOTAL EQUITY TOTAL LIABILITIES & EQUITY 176,689 (29,672) 55,000 100,000 59,894 66,783 27,652 88,992 183,427 147,017 330,444 81.294 16,200 16,576 1,480 115,550 55,000 170,550 159,894 330,444 FIN 1013 PRINCIPLES OF FINANCE_2 __________________________________________________________________________________________ Page 3 of 8 Please answer the following ratios based on the required questions below: Show the calculation of the ratio Explain the calculation answer State whether each of the ratios should be low or high a) Net profit margin or profit margin (5 marks) b) Return on Equity (ROE) (5 marks) c) Current Ratio (5 marks) d) Debt to Equity (5 marks) e) Debtors turnover ratio (d