QUESTION 1 Gama Enterprise Statement of Profit or Loss for the year ended 30 June 2020 RM RM Sales Less: Return inwards Discount allowed RM 310,000 (3000) (3,600) 303,400 Net sales Less: Costs of sales Opening inventory Purchases Less: Return outwards Discount received Duty on purchases Cost of goods available for sales Less: Closing inventory Cost of sales Gross profit 100,000 132,800 (2.000) (4.800) 126,000 800 226,800 (74.680 2 (152,120) 151,280 Add: Revenues Rent received Dividend on investment 5,600 2,800 8,400 Less: Expenses Carriage outwards Repairs and maintenance Electricity and water Salaries and wages Printing and stationery Interest on loan Bad debts Insurance Advertising Depreciation expense: Office equipment Motor vehicles 16,200 8,400 7,630 17.000 1,560 5,000 1,200 4,800 1,800 500 8,000 Net profit (72,090) 87,590 Gama Enterprise Statement of Financial Position as at 30 June 2020 RM RM RM Non-current Assets: Cost Acc. Depn. CV 300,00 300,00 Freehold premises Office equipment 10,000 (1,250) 8.750 Motor vehicles 80,000 (15,000) 65,000 373,75 0 Investments 56,000 Current Assets: Inventor Accounts receivable (Net) Cash at bank Accrued rent received Prepaid electricity and water Prepaid advertising 74,680 95,800 12,600 1.800 1,200 800 186,88 0 616,63 0 404,95 0 Total equity Non-current Liabilities: 5% loan from Sejahtera Bank 100,00 0 Current Liabilities: Accounts payable Accrued printing and stationery Accrued interest on loan Accrued repairs and maintenance 104,000 280 5,000 2,400 111,68 0 616,63 0 Gama Enterprise Statement of Profit or Loss for the year ended 30 June 2021 RM RM RM Sales Less: Return inwards Discount allowed 420.000 (3.600) (4,500) 411.900 Net sales 120,000 159,360 (2,400) (5,760) Less: Costs of sales Opening inventory Purchases Less: Return outwards Discount received Duty on purchases Cost of goods available for sales Less: Closing inventory Cost of sales Gross profit 151,200 960 272,160 (89.600 (182,560 229,340 Revenue Add: Rent received Dividend on investment 6,720 3,500 10,220 Expense Less: Carriage outwards Repairs and maintenance Electricity and water Salaries and wages Printing and stationery Interest on loan Bad debt Insurance Advertising Depreciation expenses: Office equipment Motor vehicles 19,440 10,080 9.100 20,400 1,870 5,000 1,350 5,300 2,500 500 8,000 (83,540) 156,020 Net profit Gama Enterprise Statement of Financial Position as at 30 June 2021 RM RM RM Non-current Assets: Cost Acc. Depn. CV 300,00 Freehold premises 300,000 Office equipment 10,000 (1.750) 8,250 Motor vehicles 80,000 (23,000) 57,000 365,25 0 Investments 70,000 Current Assets: Closing Inventory Accounts receivable (net) Cash at bank Accrued dividend recieved Prepaid electricity and water Prepaid advertising 89,600 108.960 22,500 2.000 500 1,200 224,76 0 660,01 0 Total equity 428,46 0 Non-current Liabilities: 5% loan from Sejahtera Bank 100,00 0 Current Liabilities: Accounts payable Accrued printing & stationery Accrued interest on loan Accrued repairs and maintenance 122,200 350 5,000 4,000 131,55 0 660,01 0 Additional Information: 1. Assume there are 365 days in a year. 2. For year ended 30 June 2020, 65% of revenues were credit sales whereas for year ended 30 June 2021, 40% of revenues were cash sales. Required: Based on the financial statements for the year ended on 30 June 2020 and 2021 given, you are required to: a. Calculate for both years: i. Current ratio ii. Acid-test ratio iii. Gross profit margin iv. Net profit margin V. Return on investment vi. Inventory turnover ratio vii. Average collection period (30 marks) b. Interpret each of the ratios for both years. (14 marks) C. Compare and contrast the liquidity ratios, profitability ratios and efficiency ratios for both years. (6 marks) (Total: 50 marks) END OF QUESTION PAPER