BKAF1023 INTRODUCTION TO FINANCIAL ACCOUNTING BKAF1023 INTRODUCTION TO FINANCIAL ACCOUNTING QUESTION 3 (15 MARKS) Additional information: 1. 2. The comparative financial statement below shows the financial position of Fanor Sdn Bhd for the year 2018 and 2019, respectively. Fanor Sdn Bhd Comparative Statement of Financial Position As at 31 December 2018 and 2019 3. The total assets as at 31 December 2017 is RM14,750,600. The net sales for the year ended 31 December 2018 and 31 December 2019 are RM16,545,900 and RM21,250,800 respectively. The gross profit for the year ended 31 December 2018 and 31 December 2019 are RM6,189,900 and RM9,500,800. The net profit for the year ended 31 December 2018 and 31 December 2019 are RM1,700,350 and RM2,350,750 respectively. The cost of goods sold for the year ended 31 December 2018 is RM10,356,000 while the cost of goods sold for 31 December 2019 is RM11,750,000. 4. 2019 RM 2018 RM 5. 3,000,770 1,319,880 1,870,000 6,190,650 2,750,350 2,170,130 1,500,000 6,420,480 REQUIRED: (a) Compute the following ratios for the year 2018 and 2019 based on the financial data provided. Round your answer to two (2) decimal points. Non-Current Assets: Properties Equipment Long-term investment Total Non-Current assets Current Assets: Cash Short term investments Accounts receivable Inventories Prepaid expense Total Current Assets Total Assets Equity: Share capital Reserves Retained earnings Total Equity 5,250,755 2,200,000 2,560,376 2,564,369 125.000 12,700,500 18,891,150 4,440,930 1,000,670 2,234,560 1,404,260 250.000 9,330,420 15,750,900 1. 2. 3. 4. 5. Current ratio Equity ratio Total assets turnover Debt ratio Profit margin (9 Marks) (b) 3,000,000 550,000 5,800,860 9,350.860 3,000,000 675,000 3,450,110 7,125,110 Based on the ratios and percentages computed in (a), provide your comments on Fanor Sdn Bhd's: i. ii. ili. iv. Liquidity Efficiency Profitability Solvency 3,450,000 3,450,000 5,550,000 5,550,000 (6 Marks) Liabilities Non-current Liabilities Long term loan Total Non-Current Liabilities Current Liabilities Short term loan Accounts payable Notes payable Unearned revenues Total Current Liabilities Total Liabilities and Equity 1,000,790 1,575,000 2,755,000 1,900,660 1.000.000 434,630 6,090,290 18,891,150 "END OF QUESTIONS" 500,000 3,075,790 15,750.900 5 6