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)
QUESTION 3 (25 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 2020 RMOOO 5,327 4,420 2019 RMODO 3.725 2,905 Sales revenue Cost of sales 907 87 820 75 Gross profit Operating expenses Profit before interest and taxation 820 Interest payable 745 20 130 Profit before taxation Taxation 690 135 725 145 Profit after taxation 555 580 Stahoffin IN 2030 200 RMICO RMS Assets Non-current assets Property, plantada 3131 4.700 Current Todos 2.623 1.726 Entrades Reiting 100 14 3.3 98 catia 190 Cra LO 175 295145 Tant 43 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) QUESTION 3 (25 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 2020 RMOOO 5,327 4,420 2019 RMODO 3.725 2,905 Sales revenue Cost of sales 907 87 820 75 Gross profit Operating expenses Profit before interest and taxation 820 Interest payable 745 20 130 Profit before taxation Taxation 690 135 725 145 Profit after taxation 555 580 Stahoffin IN 2030 200 RMICO RMS Assets Non-current assets Property, plantada 3131 4.700 Current Todos 2.623 1.726 Entrades Reiting 100 14 3.3 98 catia 190 Cra LO 175 295145 Tant 43 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
