ITEM	RM
Assets:
Current Assets	110,186,616
Non-current assets	112,192,199
Total assets	222,378,815
Liabilities and Equity:
Current liabilities	49,620,001
Non-current liabilities	12,255,909
Common stockholders' equity	160,502,905
Total liabilities and equity	222,378,815
Income Statement:
Net income for Year 2	10,715,512
Income tax rate Year 2	-4,2%

1. Determine the current level of debt, ROCE in percentage.
2. Determine Net income (without leverage)
3. Determine ROCE (without leverage)
4. By considering ROCE with and without leverage, does leverage (from long-term debt) benefit your companys shareholders?
5. Compute your companys NOPAT and RNOA (use ending NOA).
6. Again, by considering ROCE and RNOA, does the use of leverage benefit your companys shareholders?
7. Compute the percentage of financial leverage (Noncurrent liabilities/Equity)
8. Compute ROCE using its disaggregation formula (RNOA +LEV + Spread)
9. Compute the actual value of favourable effect of financial leverage

Group Note 2021 RM 2020 RM Company 2021 2020 RM RM 324,000 324,000 Revenue Cost of sales 4 65,154,185 37,243,769 5 (56,559,826) (32,608,652) Gross profit Other operating income Administrative expenses Other operating expenses Net allowance for expected credit losses 8,594,359 4,635,117 22,452,408 1,214,509 (16,010,694) (12,220,123) (2,225,829) (11,120,432) (894,591) (1,288,351) 324,000 21,534,664 (4,141,694) (3,331,502) (5,500,191) 324,000 776,373 (3,669,986) (9,544,886) (3,780,908) 6 11,915,653 (18,779,280) 8,885,277 (15,895,407) Profit/(Loss) from operations Finance income Finance costs Net finance costs)/income 7 8 86,312 (1,241,535) 120,359 (1,218,197) (1,097,838) 385,038 (180,881) 390,303 (242,688) 147,615 (1,155,223) 204,157 10,760,430 (19,877,118) (44,918) 1,238,018 9,089,434 (15,747,792) 705,412 9 Profit/(Loss) before tax Income tax expense Net profit/(loss)/Total comprehensive income/(loss) for the year 10,715,512 (18,639,100) 9,089,434 (15,042,380) Net profit/(loss)/Total comprehensive income/(loss) attributable to: Owners of the Company Non controlling interests 12,580,263 (1,864,751) (17,234,781) (1,404,319) 10,715,512 (18,639,100) 10 0.77 (2.02) Basic earnings/(loss) per share (sen) Diluted earnings/(loss) per share (sen) 10 0.52 NA Group Note 2021 RM 2020 RM Company 2021 2020 RM RM 324,000 324,000 Revenue Cost of sales 4 65,154,185 37,243,769 5 (56,559,826) (32,608,652) Gross profit Other operating income Administrative expenses Other operating expenses Net allowance for expected credit losses 8,594,359 4,635,117 22,452,408 1,214,509 (16,010,694) (12,220,123) (2,225,829) (11,120,432) (894,591) (1,288,351) 324,000 21,534,664 (4,141,694) (3,331,502) (5,500,191) 324,000 776,373 (3,669,986) (9,544,886) (3,780,908) 6 11,915,653 (18,779,280) 8,885,277 (15,895,407) Profit/(Loss) from operations Finance income Finance costs Net finance costs)/income 7 8 86,312 (1,241,535) 120,359 (1,218,197) (1,097,838) 385,038 (180,881) 390,303 (242,688) 147,615 (1,155,223) 204,157 10,760,430 (19,877,118) (44,918) 1,238,018 9,089,434 (15,747,792) 705,412 9 Profit/(Loss) before tax Income tax expense Net profit/(loss)/Total comprehensive income/(loss) for the year 10,715,512 (18,639,100) 9,089,434 (15,042,380) Net profit/(loss)/Total comprehensive income/(loss) attributable to: Owners of the Company Non controlling interests 12,580,263 (1,864,751) (17,234,781) (1,404,319) 10,715,512 (18,639,100) 10 0.77 (2.02) Basic earnings/(loss) per share (sen) Diluted earnings/(loss) per share (sen) 10 0.52 NA