QUESTION 1 The following is an extracted unaudited interim Financial report for the third quarter ended 30 September 2020 of 7-Eleven Malaysia Holdings Bhd. Unaudited Interim Financial Report For the third quarter ended 30 September 2020 Condensed Consolidated Statements of Financial Position The Group Unaudited Audited As at 30.9.2020 As at 31.12.2019 RM'000 RM 000 Assets Non-current assets Property, plant and equipment 360,382 338,129 Right of use assets 626,250 608,530 Intangible assets 328,349 29,390 Other investments 3,821 28,000 Investment in an associate 6,547 Sundry receivables 23,622 14,533 Deferred tax assets 2,216 1,351,187 1,018,582 Current assets Inventories 302,187 231,330 Sundry receivables 54,867 75.900 Cash and bank balances 175,851 96,207 532,905 403,437 Total assets 1,884,092 1,422,019 Equity and liabilities Equity attributable to equity holders of the Company Share capital 1,485,138 1,485,138 Treasury shares (138,876) (128,928) Capital reorganisation deficit (1,343,248) (1,343,248) Assets revaluation reserve 41.969 41,969 Retained profits 39,999 46,985 84,982 101,916 Non-controlling interest 47,540 195 Total equity 132,522 102.111 Non-current liabilities Provisions 8,923 9,804 Borrowing 336,966 25,200 Lease liabilities 537,375 530,520 Contract liabilities 7.905 4,549 Deferred tax liabilities 8.203 9,872 899,372 579,945 N CONFIDENTIAL CONFIDENTIAL MARCH 2021/SET A/MAC4083 Current liabilities Provisions Borrowings Trade payables Other payables Lease liabilities Contract liabilities Taxation 1,490 169,582 434,232 129,350 98,138 3,476 15,930 852,198 1.751,570 1,884,092 529 124,200 403,259 129,449 76,592 2,510 3,424 739,963 1,319,908 1,422,019 Total liabilities Total equity and liabilities Net assets per share attributable to ordinary equity holders of the Company, based on number of outstanding shares in issues with voting rights (sen) 7.43 8.86 Unaudited Interim Financial Report for the third quarter ended 30 September 2020. Condensed Consolidated Statements of Comprehensive Income Individual Quarter 3 months ended 30.9.2020 30.9.2019 RM'000 Revenue 677,123 Cost of sales (480,526) Gross profit 196,597 Other operating income 38,160 Selling and distribution expenses (159.842) Administrative and other operating expenses (35,658) Profit from operations 39,257 Finance costs (14,573) Share of results of an associate (316) Profit before tax 24,368 Income tax expense (8,578) Profit after tax 15,790 Assume that 20% of the revenue is on credit sales. RM'000 594,160 (404,063) 190,097 33,278 (162,555) (26,929) 33,891 (10,786) 23,105 (6,130) 16,975 BITI CONFIDENTIAL MARCH 2021/SET A/MAC4083 ii. Required 1. Prepare a vertical analysis for the statement of financial position (as at 30th September 2020 and as at 31st December 2019) (15 marks) Prepare a vertical analysis for the statement of comprehensive income (for the 3 months ended 30 September 2020 and 30th September 2019). (10 marks) Calculate the following ratios as at 30 September 2020 a. Current ratio (1.5 marks) b. Acid-test ratio (1.5 marks) C. Accounts receivable ratio, assume that the average receivable balance for the three months of 2020 is RM6,227,000. (1.5 marks) d. Inventory turnover: assume that the average inventory balance for the three months of 2020 is RM76,218,000. (1.5 marks) iv. State your opinion on the above findings in (0). (i) and (ii). Your explanation needs to include, but not limited to the following aspects; a. The company's capability in paying bills and short-term debts. b. How fast the customers paying their bills. c. How fast the account receivable could turn into cash. d. How fast the company able to sell their products. (19 marks) (Total: 50 marks)