QUESTION 2 (30 marks) Kossan Berhad has zero inventory and the following purchase are made during the year Jan Apr July Oct Dec Units 500 200 300 600 400 2000 Per Units RM 29 27 25 23 21 Kossan Berhad managed to sold off 1200 units with price per unit RM42 and operating expenses is RM8,000. End of year assets excluding inventories is RM95,000 of which RM 65,000 are current. Current liabilities amount to RM35,000 and Long-term liabilities equal RM15,000. Required: i) Compute net income for the year based on FIFO, LIFO and WA methods. (15 marks) ii) Comment the results based on above question (5 marks) iii) Compute the following ratios under FIFO and LIFO method. (10 marks) (1) Current ratio (2) Quick ratio (3) Debt to equity ratio (4) Inventory turnover (5) Net profit margin QUESTION 2 (30 marks) Kossan Berhad has zero inventory and the following purchase are made during the year Jan Apr July Oct Dec Units 500 200 300 600 400 2000 Per Units RM 29 27 25 23 21 Kossan Berhad managed to sold off 1200 units with price per unit RM42 and operating expenses is RM8,000. End of year assets excluding inventories is RM95,000 of which RM 65,000 are current. Current liabilities amount to RM35,000 and Long-term liabilities equal RM15,000. Required: i) Compute net income for the year based on FIFO, LIFO and WA methods. (15 marks) ii) Comment the results based on above question (5 marks) iii) Compute the following ratios under FIFO and LIFO method. (10 marks) (1) Current ratio (2) Quick ratio (3) Debt to equity ratio (4) Inventory turnover (5) Net profit margin