Kossin Rubber Bhd and Nilax Rubber Bhd are both involved in glove manufacturing business. The financial statement for the two companies are as follows: Statement of Financial Position As at 31 December 2017 Cash Accounts Receivable Inventories Current assets Net Fixed assets Total assets Kossin Rubber Bhd (RM'000) 4,000 1,500 5,500 11,000 16,000 27,000 Nilax Rubber Bhd (RM'000) 1,100 5,000 3,900 10,000 15,000 25,000 Accounts payable Accrued expenses Notes payable Current liabilities Long-term debt Owner's equity Total liabilities and owners' equity 4,500 300 5,000 9,800 10,000 7,200 27,000 3,000 500 4,500 8,000 7,000 10,000 25,000 Statement of Profit and Loss For the year ended 31 December 2017 Net sales (all credit) Cost of goods sold Gross profit Operating expenses Net operating income Interest expense Earnings before taxes Income tax Net income Kossin Rubber Bhd (RM'000) 50,000 (40,000) 10,000 (6,000) 4,000 (1,000) 3,000 (720) 2,280 Nilax Rubber Bhd (RM'000) 40,000 (25,000) 15,000 (7,000) 8,000 (600) 7,400 (1,776) 5,624 Additional information: Kossin Rubber Nilax Rubber 1. 2. 3. Number of ordinary shares issued Market price per share Industry average for price earning ratio is 5.5 3,000 RM5.60 4,000 RM6 Required: a. Calculate the following ratios for Kossin Rubber Bhd and Nilax Rubber Bhd: i. ii. iv. V. vi. Current ratio Average collection period Net profit margin Debt ratio Earnings per share Price earning ratio (11 marks) b. Comment on any TWO (2) weaknesses in the performance of Kossin Rubber Bhd as compared with Nilax Rubber Bhd, that Kossin's management might focus on to make improvements. (4 marks) c. Based on your answer in (a) above, state with reasons which company would be attractive to the potential investors. (3 marks) (Total: 18 marks)