Question 1 The comparative data from the statement of financial position of Azam Berhad at 31 December, 2016 and 2017 are as follows. Comparative data on current assets and current liabilities at 31 December 2017 I 2017 2016 I RM RM Current Assets Inventories 454.500 ||490.200 Accounts receivable I 174.100 1190.750 Prepaid expenses 17.100 119.200 Cash and cash equivalents T136.500 17.550 Current Liabilities Accounts payable Short-term bank loan 11117,450 ||123.450 117.250 III.250 Statement of profit or loss for the year ended 31 December 2017 TIRM Sales Revenue ILON 1,000 Cost of goods sold 11585.000) Gross profit 1498,000 Depreciation expense |(36,600) Other expenses 192.850) 168 $50 Other gains Mosses): Loss on sale of 11 equipment (2.100) Profit before tax 166.450 Income tax expense |(9,450) Profit for the year The following transactions occurred during the year ended 31 December 2017: 1) Purchase of equipment amounted to RM143,000. Paid cash RM83,250 and signing a long-term loan note payable for the balance. 2) Sold equipment at RM30,150, for RM28,050 cash. 3) Declared and paid cash dividend of RM63,000. 4) The company issued ordinary shares for cash RM33,000. 5) The company took a short-term bank loan for RM6,000. Required: Prepare Statement of Cash Flows of Azam Berhad for the year ended 31 December 2017, in accordance to MFRS 107, using the indirect method to report operating activities. Question 2 Top managers of Swoosh Products Sdn. Bhd. have asked you for your help in comparing the company's profit performance and financial position with the average for the industry. The accountant has given the company's statement of profit or loss and statement of financial position and also the following data for the industry: Swoosh Product Sdn Bhd Stament of pronto low compared with a competir company For the year ended December 11, 2014 Swoosh Competitor Net sales 900,000 1.000,00 Cost of goods sold 66,000 ST Gross proti 252,000 427,000 Operating expenses 215.000 90,000 Operating income 36,000 133,000 Other expenses 500 25.000 Net Income 22.500 ION,000 Swoosh Products Sdn. Bhd. Statement of financial position compared with a competitor company At Theeher 31, 2014 Swoosh Competito Current assets 408 100 49000 Property and equipment, net 99,640 114.000 Intangible assets, not $10 Total Su 00000000 Current liabilities 205 640 2 83.200 Long-term liabilities 112300 126.000 Shareholders' equity 212.000 190.800 S 600.000 Total You are to assume that all assets and equity amounts reflect the average for the year 2014. Required: a. Compute the following ratios for both companies for the current year 2014 1. Current ratio 2. Ratio of gross profitto net sales 3. Ratio of net income ta net sales 4 Totalase turnover ratio 5. Debi ratio 6. Return on total assets 7. Return on har holders' equity b. Is Swoosh Product Sdn. Bhd. Profit performance and financial position better or worse than the competitor company? Justify your answer using the results in (a) above. Ratio formula: Curato Current liabilities Acid-testato Quick Current liabilities Ratio of gross profitto net sales Gross profit Net sales Ratio of net income nel sales Net income Net sales Total asset tummoneratio N et sales/Total assets Debe ratio Teliabilities Tocal assets Return on total a cts Net income Totalasses Return on shareholders equity Net income Total Shareholders' equity
