Question 1 On July 5, 2020 Encik Norman, a chief financial officer for Pearl Berhad, contacted the firm's bank regarding a loan. The loan was to be used to repay notes payable and to finance current assets. Encik Norman wanted to repay the loan plus interest in one year. Upon receiving the loan request, the bank asked the firm to submit its complete financial statements for the past two years. These statements are presented below: 2019(RM) Pearl Berhad: Balance Sheet as at 30th June 2020(RM) Assets Cash and marketable securities 171,264 Accounts receivable 1,756,000 Inventories 3,432,960 Total current assets 5,360,224 Gross fixed assets 2,394,320 Less: Accumulated Depreciation 760,240 Net fixed assets 1,634,080 Total assets 6,994,304 115,200 702,400 1,430,400 2,248,000 982,000 292,400 689,600 2,937,600 Liabilities and equity Accounts payable Notes payable Accruals Total current liabilities Long-term bonds Total debt Common stock (100,000 shares) Retained earnings Total common equity Total liabilities and equity 873,600 600,000 816,000 2,289,600 800,000 3,089,600 3,442,352 462,352 3,904,704 6,994,304 291,200 400,000 272,000 963,200 646,864 1,610,064 920,000 407,536 1,327,536 2,937,600 Pearl Berhad: Income Statements for the year ended 2020(RM) 2019(RM) 35,178,000 17,160,000 29,379,960 4,320,000 2,750,000 1,793,360 32,129,960 16,113,360 Net sales Cost of goods sold Other expenses Total operating expenses excluding depreciation Earnings before interest, taxes, depreciation, and amortization Depreciation Earnings before interest and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes (40%) Net Income 3,048,040 584,800 2,463,240 350,040 2,113,200 845,280 1,267,920 1,046,640 94,500 952,140 219,140 733,000 293,200 439,800 3