+ Question 1 The following is the trial balance for Amelina Sdn. Bhd. as at 31 December 2020: DR CR RM RM Bank Trade receivables 6,723 18,910 Trade payables 12,304 Inventory at 31 December 2019 40,360 Buildings at cost 100,000 Equipment at cost 45,000 Accumulated profits as at 31 December 2019 15,286 General reserve 8,000 Foreign exchange reserve 4,200 Authorised and issued share capital 100,000 Purchases 72,360 Sales 135,486 Carriage inwards 1,570 Carriage outwards 1,390 Salaries 18,310 Rates and occupancy expenses 4,235 Office expenses 3,022 Sundry expenses 1,896 Accumulated depreciation at 31 December 2019: Buildings 32,000 Equipment 16,000 Directors' remuneration 9,500 i. Inventory at 31 December 2020 amounted to RM52.360. Additional information: II. iii. Rates owing RM280, office expenses owing RM190. Dividend of 10 per cent proposed. iv. V. Transfers to reserves: General RM 1,000; Foreign exchange RM800. Depreciation on cost: Buildings 5 per cent; Equipment 20 per cent. Bank Trade receivables 6,723 18,910 Trade payables 12,304 Inventory at 31 December 2019 40,360 Buildings at cost 100,000 Equipment at cost 45,000 Accumulated profits as at 31 December 2019 15,286 General reserve 8,000 Foreign exchange reserve 4,200 Authorised and issued share capital 100,000 Purchases 72,360 Sales 135,486 Carriage inwards 1,570 Carriage outwards 1,390 Salaries 18,310 Rates and occupancy expenses 4,235 Office expenses 3,022 Sundry expenses 1,896 Accumulated depreciation at 31 December 2019: Buildings 32,000 Equipment 16,000 Directors' remuneration 9,500 Additional information: i. ii. iii. iv. V. Inventory at 31 December 2020 amounted to RM52.360. Rates owing RM280, office expenses owing RM190. Dividend of 10 per cent proposed. Transfers to reserves: General RM 1,000; Foreign exchange RM800. Depreciation on cost: Buildings 5 per cent; Equipment 20 per cent. Required: Prepare the Statement of Comprehensive Income for the year to and the Statement of Financial Position for Amelina Sdn. Bhd. as at 31 December 2020 for INTERNAL USE. Question 2 You are the accountant of Spicy Yummy, a fast food company. The directors of your company require you to analyze and interpret the most recent financial statements and compare its performance with those of previous year. You are presented with the following summarised accounts for Spicy Yummy. Statements of Comprehensive Income for the year ended 31 March 2019 and 2020: Sales revenue Cost of sales (see note below) Gross profit Distribution costs Administrative expenses Profit from operations Finance cost Profit before tax Income tax expense Net profit for the period 31 March 2019 RM'000 31 March 2020 RM'000 2,000 2,900 (1,200) (1,800) 800 1,100 (160) (250) (200) (200) 440 650 (50) (50) 390 600 (44) (46) 346 554 Note: 10% and 20% of purchases and sales were for cash respectively. Cost of sales figures are made up as follows: Opening inventory Purchases Less Closing inventory Cost of sales Year ended 31 March 2019 RM'000 31 March 2020 RM'000 180 200 1,220 1,960 1,400 2,160 (200) (360) 1,200 1,800 RM'000 (1,214) Non-current assets -cost Less accumulated Statement of Financial Position 31 March 2019 RM'000 31 March 2020 RM'000 RM'000 3,100 3.674 (1,422) depreciation 1,886 2,252 Current assets Inventory 200 360 Trade receivables 400 750 Cash at bank 100 120 700 1,230 2,586 3,482 Capital and reserves Issued ordinary share 1,200 1,200 capital Accumulated profits 368 922 1,568 2,122 Non-current liabilities 10% loan notes 500 500 Current liabilities Trade payables Sundry payables Income tax Required: 210 260 380 430 48 50 518 2,586 860 3,482 a. For each of the two years, calculate THREE (3) profitability ratios, TWO (2) liquidity ratios and THREE (3) efficiency ratios to assist you in your analysis and interpretation of Spicy Yummy's financial statements. (16 marks) b. Comment on the ratios you have calculated for both years, and suggest possible reasons for any changes.