Question 1

Do what you required to according to Malaysian perspective :

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