Danish Delight Berhad has been in operation since 2019. To ensure its competitiveness with other companies within the same industry, the CEO request constant review of companys 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 follow.

Danish Delight Berhad Statement of Profit or Loss and Other Comprehensive Income For the year ended 31 December 2020
	RM
Sales revenue	3,143,980
Cost of goods sold	1,960,700
Gross profit	1,183,280
Administrative expenses	510,300
Selling expenses	230,130
Net income	442,850

Danish Delight Berhad Statement of Financial Position As at 31 December 2020
	RM
Inventory	110,230
Cash	83,650
Receivable accounts	120,100
Total current assets	313,980
Total fixed assets	1,130,000
Total assets	1,443,980
Current liabilities
Payable accounts	120,400
Tax payable	87,000
Total current liabilities	207,400
Long term loan	320,000
Owners equity	916,580
Total liabilities and equity	1,443,980

Industry average ratio:

Current ratio	1.7
Quick ratio	1.2
Gross profit margin	20%
Asset turnover	2 times
Debt ratio	34%
Equity ratio	0.43

Additional information:

Total assets as at 31 December 2019 is RM1,500,000.

REQUIRED:

1. Prepare vertical analysis on statement of profit, loss and comprehensive income of 2020 for Danish Delight Berhad.

2. Calculate the following ratios for the year 2020 and provide a brief analysis of Danish Delight Berhads financial performance relative to the industrial average (formula is provided).

	Formula:
Current ratio	Current Assets Current Liabilities
Quick ratio	Current Assets Inventories Current Liabilities
Gross profit margin	Gross Profit Net Sales
Asset turnover	Net Sales Average Total Assets
Debt ratio	Total Liabilities Total Assets
Equity ratio	Total Owners Equity Total Assets