Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

help me please sorry wrongly post Abad Budi Bhd. is a listed company on Bursa Malaysia and involved with food and beverage industry since 2001.

image text in transcribed

help me please

sorry wrongly post

Abad Budi Bhd. is a listed company on Bursa Malaysia and involved with food and beverage industry since 2001. The company is located in Selangor and supplies its products throughout Malaysia. The extracted financial statements of the company for the year 2020 and 2019 are presented below. Abad Budi Bhd. Statements of Financial Position as at 31 December 2020 RM(2000) 2019 RM("000) Assets Property, Plant and Equipment Intangible Assets Investments (Long Term) Inventory Account Receivable Cash Prepaid Expenses 694.2 876.7 12.3 768.3 776.6 553.3 204.4 3,885.8) 647.0 849.3 12.6 653.5 664.9 611.6 269.2 3,708.1 Equity and Liabilities Ordinary Shareholders Non-Current Liabilities Current Liabilities 1,708.6 679.5 1,497.7 3,885.8 1,749.0 637.1 1,322.0 3,708.1 Abad Budi Bhd. Statement of Profit or Loss and Other Comprehensive Income For the Year Ended 31 December Sales Revenue Cost of Goods Sold Selling and Administration Expenses Interest Expense Income before Income Taxes Income Tax Expense Net Income 2020 RM('000) 6,336.3 1,617.4 4,007.6 13.9 697.4 291.3 406.1 2019 RM('000) 5,790.4 1,476.3 3,679.0 27.1 608.0 232.6 375.4 REQUIRED: Compute the following ratios for the year 2020 and 2019 as well as analyse the ratios based on your results. i. ii. 111. iv. Current ratio Inventory turnover ratio (Inventory on 31 December 2018 was RM599) Profit margin ratio Return on assets ratio (Assets on 31 December 2018 were RM3,349.90) Return on ordinary shareholders' equity ratio (Equity on 31 December 2018 was RM1,795.90) Debt to total assets ratio Times interest earned ratio (14 Marks) vi. vii. (b) Vertical analysis and horizontal analysis are the basic analysis for comparative analysis or analytical procedure. Briefly explain THREE (3) ways of comparative analysis. (3 Marks) Current ratio is one of the ratios in assessing the company's solvency. Briefly explain THREE (3) ways or approaches that management of Abad Budi Bhd might influence a company's current ratio

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cadmus Operational Auditing W R Institute Of Internal Auditors Professional Books Series

Authors: David S. Kowalczyk

1st Edition

047182660X, 978-0471826606

More Books

Students also viewed these Accounting questions