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Hello i need calculation with correct workings for my financial statement analysis. Please help me 121 1 1 1.2 13 . 1. 4 . 1

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Hello i need calculation with correct workings for my financial statement analysis. Please help me

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121 1 1 1.2 13 . 1. 4 . 1 5. Voice 6 419 1.10 1 . 11 . 1 . 12: 1 . 13 1 . 14. 1 . 15 1 4 1 . 17 1 18 Financial statement The following information is computed from Fast Food Chain's annual report for 2018. 2018 2017 RM RM Current assets RM2,731,020 RM2,364,916 Property and equipment, net 10,960,286 8,516,833 Intangible assets, at cost less applicable amortization 294.775 255,919 13,986,081 11,137,668 Current liabilities 3,168,123 2,210,735 Deferred federal income taxes 160,000 26,000 Mortgage note payable 456,000 Stockholders equity 10.201,958 8,900.933 13,986,081 11.137,668 Net sales 33,410,599 25,804,285 Cost of goods sold (30,168,715) (23,159,745) Selling and administrative expense (2,000,000) (1,500,000) Interest expense (216,936) (39,456) Income tax expense (400.000) (300,000) Net income 624.948 805,084 Note: One-third of the operating lease rental charge was RM100,000 in 2018 and RM50,000 in 2017. Capitalized interest totaled RM30,000 in 2018 and RM20,000 in 2017. Required: (a) Based on the above data for both years, compute: (i) times interest earned marks) (ii) fixed charge coverage marks (iii) debt ratio marks) (iv) debt/equity ratio marks) (v) debt to tangible net worth D Focus15 1 17 1 418 marks ) (b) Comment on the firm's long-term borrowing ability based on the analysis. (5 Marks) (c) A firm has earnings before interest and tax of RM1,000,000, interest of RM200,000 and net income of RM400,000 in Year 1. Required: (i) Calculate the degree of financial leverage in base year 1. (ii) If earnings before interest and tax increase by 10% in year 2, what will be the new level of earnings, assuming the same tax rate as in year 1? (iii) If earnings before interest and tax decrease to RM800,000 in year 2, what will be the new level of earnings, assuming the same tax rate as in year 1. (10 marks) [Total : 25 Marks]

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