Note:

Ordinary dividends of RM480,000 were paid during the year to 31 December 2020.

Required:

Calculate the following ratios for Tinderlake Sdn Bhd for the year 2020 concerned and comment on the results of these calculations:

(a) Return on capital employed

(5 marks)

(b) Gross profit margin

(5 marks)

(c) Return on capital employed

(5 marks)

(d) Current ratio

(5 marks)

(e) Net profiot margin

(5 marks)

During the year to 31 December 2020, Tinderlake Sdn Bhd attempted to stimulate sales and increase its profits by reducing selling prices, holding larger inventories and giving customers longer credit. All of the company's purchases and sales are on credit terms. Summarised financial statements for the year to 31 December 2020 (with comparative figures for 2019) are as follows: Tinderlake Sdn Bhd Statements of comprehensive income for the year to 31 December 2019 RMOOO 3,725 2,905 820 75 2020 RMOOO Sales revenue 5,327 Cost of sales 4,420 Gross profit 907 Operating expenses 87 Profit before interest and taxation 820 Interest payable 130 Profit before taxation 690 Taxation 135 Profit after taxation 555 745 20 725 145 580 RM1000 Assets Non-current assets Property.plant and equipment 5.120 47 Current Inventories 730 Trade receivables 1.22 11 23 400 1.736 7.14 6.436 Equity Ordinary shares of 2.000 2.000 Retained coming 5.50 5433 150 Liabilities Non-current liabilities Long-term loans Currenties Trade payables Taxation 1.100 135.235 145 Note: Ordinary dividends of RM480,000 were paid during the year to 31 December 2020. Required: Calculate the following ratios for Tinderlake Sdn Bhd for the year 2020 concerned and comment on the results of these calculations: (a) Return on capital employed (5 marks) (b) Gross profit margin (5 marks) (c) Return on capital employed (5 marks) (d) Current ratio (5 marks) (e) Net profiot margin