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Excellent Corporation experienced a fire on December 31, 2021, in which its financial records were partially destroyed. It has been able to salvage some of
Excellent Corporation experienced a fire on December 31, 2021, in which its financial records were partially destroyed. It has been able to salvage some of the records and has ascertained the following balances. Cash December 31, 2020 RM 30,000 December 31, 2019 RM 10,000 Accounts receivables (net) 84,000 126,000 Inventory 200,000 180,000 Accounts payable 50,000 90,000 Notes payable 30,000 60,000 Share capital ordinary, RM100 par 400,000 400,000 Retained earnings 130,000 101,000 Additional information: 1. The inventory turnover is 5 times 2. The return on ordinary shareholders' equity is 18%. The company had no share premium. 3. The accounts receivable turnover is 9.4 times. 4. The return on assets is 16%. 5. Total assets at December 31, 2020, were RM585,000. Required Compute the following for Excellent Corporation. (a) Cost of goods sold for 2021. (b) Net sales (credit) for 2021. (c) Net income for 2021. (d) Total assets at December 31, 2021. (10 marks)
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