Kindly please answer number question 3 only.

4 Question 3 The following information is taken from Tanaka Bhd for the year ended 31 December 2020 Preference dividend declared and fully paid in 2020: RM100,000 Ordinary dividend declared and fully paid in 2020: RM3,960,000 Preference share marketable price per unit at 31 December 2020: RM4.60 Ordinary share marketable price per unit at 31 December 2020: RM9.00 Tanaka Bhd Statement of Comprehensive Income for the year ended 31 December 2020 RM1000 100,000 Sales (65,000) Less: Cost of sales 35,000 Gross profit Less: Expenses Marketing expenses (13,000) Administration expenses (9,200) Finance expenses (2,880) (25,080) 9.920 Operating profit before tax Taxation (3,472) Operating profit after tax 6,448 Tanaka Bhd Statement of Financial Position as at 31 December 2020 2019 RM000 RM'000 Non-current assets 31.840 29.200 Furniture (Net book value) Current assets 2,448 3,520 Cash at bank 1.300 13,200 Inventory 7,600 7.000 Accounts receivable 600 500 Quoted shares 23,648 24,220 Total assets Current liabilities 10.400 10,920 Accounts payable 300 500 Accruals 10.700 11,420 Total liabilities Working capital 12,948 12,800 Non-current liabilities Long term loan 18,400 18,000 Net assets 26,388 24,000 Shareholder's equity 14.4 million ordinary shares 14.400 14.400 500,000 9% preference share 1,000 1,000 Retained profits 10,988 8,600 26,388 24,000 6 Required: a Calculate the following ratio for 2020: Industry average ratio i. Current ratio ii. Quick ratio iii. Inventory turnover iv. Receivables turnover V. Asset turnover vi. Times interest earned vii. Profit margin viii. Earnings per share ix. Price-earning ratio > Rate of return on total assets 2.3:1 1.1:1 5.0 12.5 2.0 5.8 4.0% RM0 46 10.5 11.0% Assumption: all sales in credit; finance expense means interest; ordinary share outstanding throughout both years = 10,000,000 shares. (10 marks) b. From the industry average, comment on Tanaka Bhd's profitability and short-term liquidity. (10 marks) Question 4 Allan and Hardy are in partnership. The following are the additional information and extracts from the Trail Balance at 31 December 2020 and after the Gross profit had been calculated Additional information . Gross profit for the year ended 31 December 2020 was shown in the Trading Account at RM68,200. The insurance premium included RM1,000 paid in advance for the year 2021. A debt of RM300 which was included in the trade debtors is to be written off as bad debts. Rent of RM200 was still unpaid on 31 December 2020 A provision for doubtful debts is to be maintained at 5% of trade receivable Depreciation of furniture and fittings is to be provided at 5% on book value Inventory held at 31 December 2020 was RM15,000. Allan and Hardy will share their profits (or losses) in the ratio of 3:2 respectively Interest on capital at 5% is to be provided for each partner and Hamid is entitled to a salary of RM8,000