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However, the financial performance starts deteriorating in the second quarter of year 2017. Even though the company recorded consistent sales during the financial year ended

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However, the financial performance starts deteriorating in the second quarter of year 2017. Even though the company recorded consistent sales during the financial year ended 31 4 December 2017, the company suffered a significant reduction of 60% in their net profit. Based on your analysis, the raw materials cost significantly increase due to the high exchange rate of Ringgit Malaysia, while the selling price remained the same. The company experienced very tight cash flow to oblige the financing monthly instalment. (g) Based on the above, evaluate the company's condition and formulate the suitable recovery plan. Support your recovery plan with THREE (3) justifications. (15 marks) However, the financial performance starts deteriorating in the second quarter of year 2017. Even though the company recorded consistent sales during the financial year ended 31 4 December 2017, the company suffered a significant reduction of 60% in their net profit. Based on your analysis, the raw materials cost significantly increase due to the high exchange rate of Ringgit Malaysia, while the selling price remained the same. The company experienced very tight cash flow to oblige the financing monthly instalment. (g) Based on the above, evaluate the company's condition and formulate the suitable recovery plan. Support your recovery plan with THREE (3) justifications. (15 marks)

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