QUESTION 1 (20 MARKS) The financial statement of TOP GUN Bhd for 2021 are given below : TOP GUN Bhd Statement of Financial Position as at 31st December 2021 (RM000) RM RM Cash 330 Account Payable 630 Accounts receivable 2,725 Short term debt 38 Inventory 2,000 Account liabilities 725 Prepaid expenses 110 Notes payable 550 Plant & equipment 3,040 Long term debt 1,500 Less : Mortgage bond 284 Accumulated depreciation 935 Ordinary share 150 Additional Paid in capital 1,555 Retained earning 1,838 TOTAL ASSETS 7,270 TOTAL LIABILITIES & EQUITIES 7,270 TOP GUN Bhd Statement Of Comprehensive Income for the Year 31st December 2021 (RM000) RM Net sales 11,730 Less : COGS 8,175 Gross profit 3,555 Less : Administrative expenses 1,700 Depreciation 110 Research and development expenses 390 Earning before interest and taxes 1,355 Less : Interest expenses 105 Earning before taxes 1,250 Less : Income taxes 600 Net Income 650 Less : Dividend paid 70 Transferred to retained earning 580 *There are 1 millions shares outstanding for TOP GUN Bhd as at 31st December 2021 and the market price is RM13. (a) Using the statement of financial position for TOP GUN Bhd for 2021 calculate the following components: i. Current Assets ii. Fixed Assets iii. Current Liabilities iv. Long-term Liabilities v. Shareholders Equity (10 marks) (b) Compute the relevant financial ratios for TOP GUN Bhd for 2021. i. Acid-Test Ratio / Quick ratio ii. Average collection period iii. Current Ratio iv. Debt ratio v. Fixed Asset Turnover vi. Market to Book ratio vii. Net Profit Margin viii. Price to Earnings ratio ix. Return On Equity x. Times interest earned (10 marks)