Kinabalu Berhad is a shoe manufacturer. The followings are the statements of income and

financial position of Kinabalu Berhad for the year ended 31 March 2019 and 31 March 2018.

Kinabalu Berhad

Comparative Statement of Financial Position as at 31 march 2019 and 2018

	2019	2018
	RM	RM
Plant assets (net)	350,000	262,500
Inventories	95,000	155,000
accounts/eceixab/e (net)	184,000	130,000
Cash	274,500	125,000
Total assets	903,500	672,500
Share capifa/-preference 10%, RM20 par	100,000	100,000
Share capital-ordinary RM5 par	110,000	70,000
Share premium-ordinary	90,000	82,500
Retained earnings	336,000	187,000
Bonds payable	135,000	135,000
Accounts payable	132,500	98,000
Total shareholders equity and liabilities	903,500	672,500

Kinabalu Berhad

Condensed income Statement for the Year Ended 31 March 2019

	RM
Net Credit Sales	600,000
Cost of goods sold	350,000
Gross Profit	250,000
Administrative and selling expenses	100,000
Net income	150,000

Additional information:

1) Assume all sales are on credit.

Required :

1. Based on the information above, compute the following ratios for the year ending 31 March 2019. Provide clear supporting calculations.

1. Accounts receivable turnover in 2019.

2. Current ratio at 31 March 2019.

3. Days sales in inventory in 2019.

4. Days purchases in account payable in 2019.

(1 mark)

5. Return on ordinary share capital-equity in 2019, (2 marks)

2. If the average cash conversion eye/e for the industry is 30 days, calculate and give your opinion on Kinabalus Berhad cash conversion cycle.

(2 marks)

(Total 8mark