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Please help me . please QUESTION 3 You work as a financial analyst in Ku-Ma Bank. You are required to compare the performance of Bartho
Please help me . please
QUESTION 3 You work as a financial analyst in Ku-Ma Bank. You are required to compare the performance of Bartho Company with the industry because they are applying for a loan from Ku-Ma Bank. The following are the financial statements given by Bartho Company. BARTHO COMPANY STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2021 (RM) Cash 500,000 35,000 25,000 Account payable Notes payable Marketable securities 40,000 350,000 Long Term Debt 700,500 Account receivable Inventories Fixed assets 300,000 Common stock 78,000 1,400,500 370,000 Paid in Capital Retained earnings 422,000 TOTAL ASSETS 2,110,500 TOTAL LIAB. & EQUITY 2,110,500 BARTHO COMPANY INCOME STATEMENT FOR THE YEAR ENDING 31 DECEMBER 2021 (RM) Sales 1,946,200 1,310,000 Less: Cost of goods sold Gross Profit 636,200 Less: Selling expenses 325,100 Earnings before interest and tax 311,100 84,500 226,600 Less : Interest expenses Earnings before tax Less : Taxes Earnings after taxes 55,600 171,000 INDUSTRY AVERAGE RATIOS Current ratio 2.30 times Quick ratio 1.30 times Total Asset turnover Average collection period Net Profit Margin 2.50 times 23 days 35.00% 75.00% Debt ratio 55.00% Times Interest Earned 12.00 times Return on assets Based on the above financial statements and industrial average ratios, a) Calculate the indicated ratios for the Bartho Company. b) Evaluate the overall performance of the company according to liquidity, activity, profitability and leverage ratiosStep by Step Solution
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