Principle of Finance | Calculation must show a formula

Question 1

You are given the following information

Lola Creative Design Sdn Bhd selected financial data 31 st December 2021
	(in RM'OOO)
Total assets	7,157
Total equities	3,248
Inventory	5,234
Operating income	723
Interest expenses	502
Sales	5,000
Net fixed assets	1 ,000

From the above information you are required to:

1. compute: Total Debt Ratio Times Interest Earned Ratio Fixed Assets Turnover Ratio Inventory Turnover Ratio (8 Marks)

Total Debt Ratio

Times Interest Earned Ratio

Fixed Assets Turnover Ratio

Inventory Turnover Ratio

b. based on your calculation in part (a), analyse Lola Creative Design Sdn Bhd performance to the following industry average ratios:

Total Debt Ratio 30%

Times Interest Earned Ratio 5x

Fixed Assets Turnover Ratio 6x

Inventory Turnover Ratio