Medical Supplies Bhd, is a medium sized company in the medical supplies industry. The issued share capital of Medical Supplies was 500.000 equity shares of which Mr. Radhi owned 325,000 shares. Mr. Radhi, is the Managing Director and major shareholder in Medical Supplies Bhd. He has prepared the income statement for 2020. a statement of financial position and a statement of retained earnings as shown in Tables 1, 2, 3 and 4 together with the comparative figures for 2019. The year-end of Medical Suppliers is 31 December. The share price in Bursa Malaysia was $2.98 per share in 2019 and $3.27 per share at 2020. Table 1 Medical Supplies 2013-2020 Net Income. Dividend Payments and Retained Earnings All dollars in thousands (5000) Year 2013 2014 2015 2016 2017 2018 2019 2020 Net (70) (30) 20 45 35 50 53 78 Income Dividends NIL NIL NIL NIL NIL 1.5 2.5 5 paid Retained (70) (30) 20 45 35 48.5 50.5 73 earnings Table 2 Income Statement for the year ended 31 December 2020 All dollars in thousands ($000) S Sales revenue 3100 Cost of goods sold 2060 Gross Profit 1040 Operating expenses General and administrative expenses Marketing costs Depreciation expense Operating profit before tax Interest expense Earnings before tax Corporation tax 246 654 16 124 4 120 42 78 Net Income Table 3 Medical Supplies Balance Sheets Current Assets Cash in bank Accounts Receivable Inventories 31.12.2020 25 130 140 31.12.2019 21 124 135 Non-current assets Accumulated depreciation 200 (68) 180 (52) Total Assets 427 408 Liabilities and Equity Accounts Payable Notes Payable Accruals Long-term debt Total liabilities 106 5 26 68 205 126 68 25 40 259 Share Capital Retained earnings Total liabilities and Equity 50 172 427 50 99 408 Table 4 Medical Suppliers Statement of Retained Earnings for the year ended 31 December 2020 All in thousands ($'000) Retained earnings from 2019 Net profit after taxes (2020) Cash dividends paid Retained earnings for 31.12.2020 99 78 (5) 172 Table 5 2019 Ratios and 2020 Industry Averages Ratios Current ratio Quick ratio Days sales outstanding Inventory turnover Fixed asset turnover Total asset turnover Debt-to-assets ratio Gross Profit Margin Profit margin on sales Return on total assets (ROA) Medical Supplies 2019 Ratios 1.28 0.66 14.6 days 14.1 times 22.8 times 6.90 times 0.63 30.5% 3.08% 17.4% 2020 Industry Averages 1.96 1.18 21.7 days 13.4 times 20.0 times 5.80 times 0.59 45.496 8.3796 20.4% Required: please calculate those Equation (2020/2019) Revenue Asset turnover = Capital employed 2020 2019 Average inventory days =- Average or closing inventory Cost of sales x 365 Average trade receivables collection period Average or closing trade receivables Credit sales or revenue x 365 Average trade payables payment period - Average or closing trade payables x 385 Credit purchases or cost of sales Gearing (%) = Non-equity funds Capital employed * 100% Interest cover Profit from operations Interest payablo Dividend payout (%) Total ordinary dividends paid Profit for the year x 100% EPS = Profit for the year x 100% Weighted average number of ordinary shares in issue Current ratio Current assets Current liabilities Quick ratio or acid test STAA Current assets inventory Current liabilities Average profit before tax generated per FTE employee Profit before tax Number of FTE employees Profit from operations/Total staff costs Profit from operations Total staff costs Medical Supplies Bhd, is a medium sized company in the medical supplies industry. The issued share capital of Medical Supplies was 500.000 equity shares of which Mr. Radhi owned 325,000 shares. Mr. Radhi, is the Managing Director and major shareholder in Medical Supplies Bhd. He has prepared the income statement for 2020. a statement of financial position and a statement of retained earnings as shown in Tables 1, 2, 3 and 4 together with the comparative figures for 2019. The year-end of Medical Suppliers is 31 December. The share price in Bursa Malaysia was $2.98 per share in 2019 and $3.27 per share at 2020. Table 1 Medical Supplies 2013-2020 Net Income. Dividend Payments and Retained Earnings All dollars in thousands (5000) Year 2013 2014 2015 2016 2017 2018 2019 2020 Net (70) (30) 20 45 35 50 53 78 Income Dividends NIL NIL NIL NIL NIL 1.5 2.5 5 paid Retained (70) (30) 20 45 35 48.5 50.5 73 earnings Table 2 Income Statement for the year ended 31 December 2020 All dollars in thousands ($000) S Sales revenue 3100 Cost of goods sold 2060 Gross Profit 1040 Operating expenses General and administrative expenses Marketing costs Depreciation expense Operating profit before tax Interest expense Earnings before tax Corporation tax 246 654 16 124 4 120 42 78 Net Income Table 3 Medical Supplies Balance Sheets Current Assets Cash in bank Accounts Receivable Inventories 31.12.2020 25 130 140 31.12.2019 21 124 135 Non-current assets Accumulated depreciation 200 (68) 180 (52) Total Assets 427 408 Liabilities and Equity Accounts Payable Notes Payable Accruals Long-term debt Total liabilities 106 5 26 68 205 126 68 25 40 259 Share Capital Retained earnings Total liabilities and Equity 50 172 427 50 99 408 Table 4 Medical Suppliers Statement of Retained Earnings for the year ended 31 December 2020 All in thousands ($'000) Retained earnings from 2019 Net profit after taxes (2020) Cash dividends paid Retained earnings for 31.12.2020 99 78 (5) 172 Table 5 2019 Ratios and 2020 Industry Averages Ratios Current ratio Quick ratio Days sales outstanding Inventory turnover Fixed asset turnover Total asset turnover Debt-to-assets ratio Gross Profit Margin Profit margin on sales Return on total assets (ROA) Medical Supplies 2019 Ratios 1.28 0.66 14.6 days 14.1 times 22.8 times 6.90 times 0.63 30.5% 3.08% 17.4% 2020 Industry Averages 1.96 1.18 21.7 days 13.4 times 20.0 times 5.80 times 0.59 45.496 8.3796 20.4% Required: please calculate those Equation (2020/2019) Revenue Asset turnover = Capital employed 2020 2019 Average inventory days =- Average or closing inventory Cost of sales x 365 Average trade receivables collection period Average or closing trade receivables Credit sales or revenue x 365 Average trade payables payment period - Average or closing trade payables x 385 Credit purchases or cost of sales Gearing (%) = Non-equity funds Capital employed * 100% Interest cover Profit from operations Interest payablo Dividend payout (%) Total ordinary dividends paid Profit for the year x 100% EPS = Profit for the year x 100% Weighted average number of ordinary shares in issue Current ratio Current assets Current liabilities Quick ratio or acid test STAA Current assets inventory Current liabilities Average profit before tax generated per FTE employee Profit before tax Number of FTE employees Profit from operations/Total staff costs Profit from operations Total staff costs