QUESTION 1 Statement of Financial Position and Statement of Profit or Loss of Bitcon Company are presented below: BITCON COMPANY STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2020 2020 2019 Cash 50,000 40,000 Accounts Receivable 80,000 60,000 Inventories 180,000 110,000 Plant and Equipment 300,000 260,000 Less: accumulated depreciation (40,000) (20,000) Total Assets 570,000 450,000 Accounts Payable Accrued Liabilities Mortgage Payable Share Capital Retained Earnings Total Liabilities and Equity 100,000 70,000 80,000 130,000 190,000 570,000 150,000 50,000 0 90,000 160,000 450,000 BITCON COMPANY STATEMENT OF PROFIT OR LOSS FOR FINANCIAL YEAR ENDED DECEMBER 31, 2020 2020 Net Sales 680,000 COGS 410,000 Gross Profit 270,000 Operating Expenses 190,000 Operating Profit 80,000 Interest Expense 7,000 Profit Before Taxes 73,000 Taxes 22.000 Net Profit 51,000 2019 600,000 330,000 270,000 192,000 78,000 2,000 76,000 22.800 53,200 Other data: Cash dividend paid in 2020 were RM21,000. The change in accumulated depreciation is the depreciation for the year. Required: Analyze the two financial statements by using the appropriate techniques to conclude on the financial performance of Bitcon Company. All sales are on credit to business customers. (Total: 25 marks)