Note: Cash sales is 40% from total sales during the year. Rosmah Boutique Statement of Financial Position as at 31 December 2019 Cost Acc. Carrying Depreciation value (RM) (RM) (RM) Non-Current Asset Freehold land and buildings 125,200 12,520 112,680 Furniture and fittings 85,000 17,000 68,000 Motor van 75,000 15,000 60,000 240,680 Current Asset Cash in hand Cash at bank Accounts receivable Inventory Prepaid expenses 14,500 65,000 122,000 185,570 250 387,320 TOTAL ASSETS 628,000 Financed by: Beginning capital Add: Net profit 330,000 86.900 416,900 (3.000) Less: Drawings Ending capital 413,900 Non-Current Liability Loan from Trust Bank 110,000 Current liability Accounts payable Accrued salaries Prepaid commission received 92,700 10,500 900 104,100 TOTAL LIABILITIES AND EQUITY 628,000 Required: a. Calculate the following ratios for Rosmah Boutique for the year ended 31 December 2019 i. Inventory turnover ratio ii. Current ratio iii. Quick ratio iv. Gross profit ratio v. Net profit ratio vi. Receivable collection period (use 360 days in a year) (9 marks) b. Comment on the asset management ratio for the company. (4 marks) c. Explain why prepayments are deducted when quick ratio is calculated? (2 mark) Total: 15 marks Rosmah Boutique Statement of Profit or Loss for the year ended 31 December 2019 RM RM RM Sales 550,000 Less: Sales returns (5,500) Net sales 544,500 Less: Cost of Goods Sold Opening inventory Purchases Less: Purchase returns 100,000 400,600 (2,300) Add: Carriage inwards Cost of goods available for sale Less: Closing inventory Cost of Goods Sold Gross Profit 398,300 5,200 503,500 (185,570) (317,930) 226,570 Add: Revenue Commission received 1,000 227,570 Less: Expenses Total expenses (140,670) Net Profit 86,900