Exercise I Chapter 2 (COEB 442, Semester I, 2017/2018) a) The data below are based on the financial statements of JJ Sdn Bhd for the year ended 31 RM Accounts and Notes Payable Accounts receivable /Debtor Machines, Vehicles & Cost of sales /Cost of Selling & Administration Expenses Dividend paid for 2016 i) ii) determine how much profit is retained during the year construct the Balance Sheet Income Statement for the year ended 31 December 2016. Cost of sales/Cost of Good Sold Selling & Administration Expenses Operating profitincome before interest & Depreciation 850,000 Profit/income before Tax Income Taxes expenses i. Retained Earnings beginning balance Net income after tax U Sdn thd. Balance Sheetas at 31 December 2016 Foed Assets Land, Buildirgs 500,000 Accounts& Notes Payable100,000 Total current Liability Machines, Vehides & Equipment 34.000 Total Fixed Assets 00,000 Current Assets term Liability Prepaid insurance 0,000 50,000 150,000 Long term Loan Total Lone-term Liability 450,000 Accounts receivable Cash and cash equivalents Total Owners Equity 380,000+Retained Earnings TotalCurrent Assets Calculate the follawing and interpret your answer: (i) The debt ratio-TL / TA-|(100,000+ 450,000) / (864,000 + 380,000)] x100% " 44.2% The company uses 44.2% debt to finance each RM1 of asset-> each RM 1 asset is financed by RM0.442 debt (loan) (i The Current ratio CACL 380,000/100,000-3.8 The company has RM3.8 current assets to cover each RM1 of current liability outstanding ii) The quick ratio [CA- Inventory-prepaid expenses CL (380,000-RMS0,000 30,000)/100,000 3 times Mfter excluding inventory and prepaid expenses, the comparry has RM3 CA to cover each RM1 of current lability outstanding (iv) The total assets turnover ratio Total Sales/Total Assots 1,500,000/1244000 1.21 times Each RM1 of assets generates RM1.21 of sales v) The gross margin on sales ratio (The gross margin ratio Gross profit / Total Sales 1,050,000 / 1,500,000 For every RM1 of sales, the gross profit is RMO.70 100% 70% (vi) The net profit margin on sales ratio (The net margin ratio) Net income / Total Sales 514,000 / 1,500,000 For avery RM1 of sales, the net profit is RMO.343 100%-34.3% Exercise I Chapter 2 (COEB 442, Semester I, 2017/2018) a) The data below are based on the financial statements of JJ Sdn Bhd for the year ended 31 RM Accounts and Notes Payable Accounts receivable /Debtor Machines, Vehicles & Cost of sales /Cost of Selling & Administration Expenses Dividend paid for 2016 i) ii) determine how much profit is retained during the year construct the Balance Sheet Income Statement for the year ended 31 December 2016. Cost of sales/Cost of Good Sold Selling & Administration Expenses Operating profitincome before interest & Depreciation 850,000 Profit/income before Tax Income Taxes expenses i. Retained Earnings beginning balance Net income after tax U Sdn thd. Balance Sheetas at 31 December 2016 Foed Assets Land, Buildirgs 500,000 Accounts& Notes Payable100,000 Total current Liability Machines, Vehides & Equipment 34.000 Total Fixed Assets 00,000 Current Assets term Liability Prepaid insurance 0,000 50,000 150,000 Long term Loan Total Lone-term Liability 450,000 Accounts receivable Cash and cash equivalents Total Owners Equity 380,000+Retained Earnings TotalCurrent Assets Calculate the follawing and interpret your answer: (i) The debt ratio-TL / TA-|(100,000+ 450,000) / (864,000 + 380,000)] x100% " 44.2% The company uses 44.2% debt to finance each RM1 of asset-> each RM 1 asset is financed by RM0.442 debt (loan) (i The Current ratio CACL 380,000/100,000-3.8 The company has RM3.8 current assets to cover each RM1 of current liability outstanding ii) The quick ratio [CA- Inventory-prepaid expenses CL (380,000-RMS0,000 30,000)/100,000 3 times Mfter excluding inventory and prepaid expenses, the comparry has RM3 CA to cover each RM1 of current lability outstanding (iv) The total assets turnover ratio Total Sales/Total Assots 1,500,000/1244000 1.21 times Each RM1 of assets generates RM1.21 of sales v) The gross margin on sales ratio (The gross margin ratio Gross profit / Total Sales 1,050,000 / 1,500,000 For every RM1 of sales, the gross profit is RMO.70 100% 70% (vi) The net profit margin on sales ratio (The net margin ratio) Net income / Total Sales 514,000 / 1,500,000 For avery RM1 of sales, the net profit is RMO.343 100%-34.3%
