CASE 4 Statement of profit or loss for the year ended June 2018 Sales Cost of sales Gross profit Selling and distribution expenses Administrative expenses Finance expenses RM'000 100,000 64,000 36,000 1,000 1,000 500 2,500 31,000 Taxes Net profit after tax Statement of profit and loss for the year ended December 2018 RM'000 32,000 Non-current assets Property, Plant and Equipment Current assets Cash Account receivables Inventory Total current assets Total assets 20,100 13,900 30,200 64,200 96,200 9,000 Non-current liabilities 8% Loan from Big Bank Current liabilities Accounts payable Shareholders' equity Total liabilities and shareholders' equity 28,000 59,200 96,200 JIndustry average ratios for the year ended 31 December 2018 Curent ratio 1.8 times Quick ratio 1.1 times Inventory turnover ratio 7 times Days sales outstanding 20 days Net profit margin 45% Gross profit margin 50% Return on assets 10% The company seeks your advice in evaluating its curent financial position and performance. You are required to perform the following task: Calculate the following ratios for the company: Curent ratio Quick ratio Inventory turnover ratio Days sales outstanding Net profit margin Gross profit margin Return on assets Identify THREE (3) weaknesses of the company. Suggest to the company on ways to improve the weaknesses identified above