Question
Question 1 Do what is you required : a) The following data are taken from the financial statements: 2019 2020 Sales RM3,600,000 RM4,000,000 Cost of
Question 1 Do what is you required :
a)
The following data are taken from the financial statements:
2019
2020
Sales
RM3,600,000
RM4,000,000
Cost of goods sold
2,000,000
2,700,000
Average inventory
372,000
352,000
Inventory, end of year
372,000
347,000
a)Determine for each year
i.the inventory turnover, round answer to one decimal place.
ii.the number of days for sales in inventory
(Round intermediate calculations to two decimal places)
B)
The following information was taken from the financial statement of Fine Resources for December 31 of the current fiscal year:
Ordinary shares, RM20 par value (no change during the year)
RM5,000,000
Preferred 10% stock, RM40 par (no change during the year)
2,000,000
The net income was RM600,000, and the declared dividends on the ordinary shares were RM125,000 for the current year.
The market price of the ordinary shares is RM20 per share.
Required:
Calculate for the ordinary shares related to:
(a)earnings per share
(b)the price-earnings ratio
(c)the dividends per share and the dividend yield
C)
The condensed balance sheet and income statement of Kenangan Sdn Bhd appear as follows:
Kenanga Sdn Bhd
Balance Sheets as at 31 December 2019
2019
2018
Current Assets:
Cash
25,000
20,000
Accounts receivables
50,000
45,000
Other current assets
90,000
85,000
Non-Current Assets
Plant and machinery
400,000
370,000
Equipment
75,000
70,000
TOTAL ASSETS
640,000
590,000
Equity
Ordinary share RM10 par
340,000
300,000
Retained earnings
145,000
125,000
Non-current Liability
Bank loan
80,000
85,000
Current Liability
Accounts payable
45,000
43,000
Other current liabilities
30,000
37,000
TOTAL EQUITY AND LIABILITIES
640,000
590,000
Kenanga Sdn Bhd
Income Statements for the years ended 31 December 2019
2019
2018
Revenue
Sales
740,000
700,000
Sales return and allowance
(40,000)
(50,000)
Cost of goods sold
(420,000)
(400,000)
Gross profit
280,000
250,000
Expenses
Operating expenses
(236,000)
(218,000)
Profit for the period
44,000
32,000
REQUIRED:
1.Compute the following ratios for the year 2019:
a.Current ratio
b.Assets turnover
c.Debt to total assets ratio
d.Profit margin
2.Compare and explain the ratios calculated above with the industry average as listed below:
a.Current ratio: 1.8
b.Assets turnover: 1.03 times
c.Debt to total assets ratio: 0.1 times
d.Profit margin: 8.2%
D)
The following is the Balance Sheet of AAA Sdn Bhd as at on 31March 2020:
ASSETS:
RM
RM
Buildings
140,000
Plant and Machinery
350,000
Inventory
200,000
Debtors
100,000
Prepaid Assets
10,000
Cash
40,000
TOTAL ASSETS:
840,000
OWNER'S EQUITY AND LIABILITIES:
Share capital
200,000
Net income
30,000
Reserves
40,000
12% Debentures
420,000
Creditors
100,000
Accounts payable
50,000
TOTAL OWNER'S EQUITY AND LIABILITIES:
840,000
REQUIRED:
Calculate:
a.Current ratio
b.Quick ratio
c.Inventory to working capital
d.Debt to equity ratio
e.Current assets to fixed asset ratio
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