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.

1. Using the statement of financial position for TOP GUN Bhd for 2021 calculate the following components:

1. Current Assets
2. Fixed Assets
3. Current Liabilities
4. Long-term Liabilities
5. Shareholders Equity

(10 marks)

2. Compute the relevant financial ratios for TOP GUN Bhd for 2021.

Acid-Test Ratio / Quick ratio Average collection period Current Ratio Debt ratio Fixed Asset Turnover Market to Book ratio Net Profit Margin Price to Earnings ratio Return On Equity Times interest earned