Danish Delight Berhad has been in operation since 2018. To ensure its competitiveness with other companies within the same industry, the CEO request constant review of company's financial performance. One of the company review approaches is to benchmark the company performance relative to overall industry achievement. The Statement of Profit or Loss and Other Comprehensive Income, Statement of Financial Position and selected ratios of industry average are as follows; Danish Delight Berhad Statement of Profit or Loss and Other Comprehensive Income For the year ended 31 December 2018 Sales revenue Cost of goods sold Gross profit Administrative expenses Selling expenses Net income Assets: Inventory Cash Receivable accounts Total current assets Total non-current assets Total assets Danish Delight Berhad Statement of Financial Position As at 31 December 2018 Liabilities and owners' equity: Payable accounts Tax payable Total current liabilities Long term loan Owners' equity Total liabilities and owners' equity RM 3,143,980 1,960,700 1,183,280 510,300 230,130 442,850 RM 110,230 83,650 120,100 313,980 1,130,000 1,443,980 120,400 87,000 207,400 320,000 916,580 1,443,980 Industry average ratio: Current ratio Quick ratio Gross profit margin Asset turnover Debt ratio Equity ratio Additional information: Total assets as at 31 December 2017 is RM1,500,000. REQUIRED: (a) Prepare vertical analysis on Statement of Profit or Loss and Other Comprehensive Income of 2018 for Danish Delight Berhad. (3 Marks) (b) Calculate the following ratios for the year 2018 and provide a brief analysis of Danish Delight Berhad's financial performance relative to the industrial average (formula is provided). (i) Current ratio (ii) Quick ratio (iii) Gross profit margin (iv) Asset turnover 1.7 1.2 20% 2 times 34% 0.43 (v) Debt ratio (vi) Equity ratio Formula: Current Assets Current Liabilities Current Assets - Inventories Current Liabilities Gross Profit Net Sales Net Sales Average Total Assets Total Liabilities Total Assets Total Owner's Equity Total Asset