QUESTION 1: (25 Marks) NUSANTARA BUMI CORPORATION Statement of Financial Position as at December 31. 2019(RM) 2018(RM) 2017(RM) Assets Cash and equivalents Account receivables Inventories Prepaid expenses Fixed assets Accumulated depreciation Total assets 612,492 454,760 414,770 0 1,937,900 621,370 2,798,552 217,961 554,200 355,642 66,000 2,437,900 427,580 3,204,123 131,085 400,522 400,522 54,000 1,837,900 183,790 2,650,917 Liabilities and Equity Accounts payable Accrued expenses Current maturities Income taxes payable Long-term debt Common stock RM0.20 par value Paid-in capital Retained earnings Total liabilities and equities 236,297 26,435 100,000 139,804 800,000 1,000,000 500,000 (3,984) 2,798,552 299,600 36,202 296,400 128,453 986,300 1,000,000 500,000 (42,832) 3,204,123 243,566 32,400 302,600 125,663 222,400 1,000,000 500,000 224,288 2,650,917 NUSANTARA BUMI CORPORATION 2017(RM) 3,245,427 2,056,670 1,188,757 Statement of Financial Performance for Years Ending 31 December 2019(RM) 2018(RM) Net Sales 3,055,563 2,983,410 Cost of Goods Sold 2,205,830 2,104,451 Gross Profit 849,733 878,959 Selling and Administrative Expenses 328,523 265,525 General expenses 203,520 200,455 Depreciation 193,790 243,790 Earnings before interest and tax 123,900 169,189 Interest expense 63,000 89,789 Earnings before tax 60,900 79,400 Tax (28%) 17,052 22,232 Earnings after tax 43,848 57,168 278,855 189,962 183,790 536,150 85,750 450,400 126,112 324,288 Nusantara Bumi Corporation is a company dealing with textiles manufacturing and has been in the market for almost 10 years. Since the textile industry is getting more competitive, Nusantara Bumi is planning for business expansion. Using the provided financial statements, you are assigned to conduct a comprehensive analysis on Nusantara Bumi Corporation in order to identify the strengths and weaknesses of its financial position. Using average values, compute any two relevant financial ratios for each area that are useful to highlights Nusantara Bumi's overall financial performance for 2019 and 2018, related to: i. Effectiveness in managing assets and efficiency in handling operations. ii. Profitability and overall operating results