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Prepare for Peter for the year ended 31 December 2019, the Cash Flow Statement in accordance with MFRS 107. Calculate the relevant ratios for the

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Prepare for Peter for the year ended 31 December 2019, the Cash Flow Statement in accordance with MFRS 107.

Calculate the relevant ratios for the year ended 31 December 2019 for the following categories; Comment on the ratios for each categories. i. Profitability ii. Liquidity iii. Efficiency iv. Solvency

Thank you in advance :)

15 Q2 The trial balances of Peters were as follow 31 December 2018 31 December 2019 RM1000 RM1000 RM900 RM1000 Freehold land and building 300 400 Machinery cost 500 Accumulated depreciation on machinery 235 200 Inventory cost Trade receivables 90 Trade payable 60 58 Sundry expenses payable 10 13 Bank 15 Loan 300 200 Capital 375 490 The summarised Income statement of Peters for the year ended 31 December 2019 follows RM1000 RM1000 Sales Cost of sales 950 Selling expenses 10 General experies 150 Depreciation machinery 75 Profit on sale of machine 15) Salaries 110 Sundry expenses LOS Profit for the year 15 * Note: the machine sold cost originally RM65,000 Drawings made during the year amounted to RM12,000

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