Part B - Question (1) Statement of Financial Position and Income Statement of May Company are shown below: May Company Statement of Financial Position 31 December (S in million) May Company Income Statement For the year ended 31 December 20Y2 (S in million) 20Y1 20Y2 17 16 690 205 127 Net sales Cost of goods sold Gross profit (298) 392 10 Cash Accounts receivable Short term investment Inventory Prepaid expenses Plant & equipment (net) 13 142 139 9. 25 284 276 599 664 Operating expenses Operating profit Interest expense Profit before taxes Income taxes Net profit (245) 147 (36) 111 (40) 71 139 115 8 Accounts payable Income taxes payable Long-term liabilities Ordinary shares (S2par) Retained earnings 234 7 220 60 197 70 213 664 599 Additional Information (1) The market price of the ordinary share as at 31 December 20Y2 is $15 per share. (2) May Company declared and paid a dividend of S45 million during 20Y2. (3) Credit sales totalled 85% Required: Calculate the following ratios of the company for 20Y2, round all answers up to 2 decimal places Workings Answers (1) Current ratio (2) Quick ratio (3) Accounts receivable turnover = 3.53 (4) Inventory turnover 85% X 690 (205+122=2 198 (1314 142)=2 = 2.12 (5) Interest coverage ratio = (6) Debt ratio = = % (7) Return on assets = % (8) Return on equity % (9) Earnings per share = $ (10) Gross profit rate % (11) Price-earnings ratio = (12) Dividend yield %