Question 2 a) Below are the financial statements of Kent & Roger International Bhd. Profit & Loss Accounts for the year ended 31 December 2015 and 2016 2016 2015 RM 000 RM000 Net sales 11378 9,587 Cost of goods sold 7,918 6,717 Other expenses 1,291 1,033 Depreciation 559 474 EBIT 1,610 1,363 Net interest 205 165 541 444 Net Profit 864 754 Preferred stock dividend 19 21 Earnings applicable to common stock 845 733 Tax Balance Sheets as at 31 December 2015 and 2016 2016 RM000 2015 RM200 Timberland, plant and equipment Other long-term assets 7,002 1,484 8.486 5,906 891 6,797 Cash and short term securities Receivables Inventories Other current assets 102 1,517 1,355 120 3.094 122 1,153 971 97 2.343 11,580 9,140 Total assets Debt due Payables Other current liabilities 252 1,017 934 779 2,730 672 638 1,562 Common equity Long term debt 5,147 3,703 8,850 4,557 3,021 7,578 Total equity and liabilities 11,580 9,140 Required: a) Based on the financial information given, calculate the following ratios for the year 2015 and 2016 (Assuming 360 days in a year) (6 marks) 0 Current ratio 10) Inventory turnover ratio 1) Day sales outstanding iv) Debt ratio v) Net profit margin vi) Return on equity