Question 2 Two companies Samsong Sdn Bhd and Huaway Sdn Bhd trade in the same market. Their financial statements for the year ended 30 September 2019 are summarised below: Statements of Comprehensive Income for the year ended 30 September 2019: Samsong Huaway RM'000 RM000 Revenue 284 405 Cost of sales (155) (251) Gross profit Administrative 129 154 (24) Distribution (37) (53) (35) Depreciation (9) (12) Interest on loan Nil (5) Profit before tax 61 47 (10) Income tax expense Profit for the year Note: dividends paid during the year 51 43 8 Statement of Financial Position as at 30 September 2019 Samsong Huaway RM000 RM000 RM'000 RM 000 Assets Non-current assets At cost 320 515 Less : Acc depreciation (75) (96) 245 419 Current assets Inventory 91 293 Trade receivables 46 75 Bank 64 15 Total assets 446 802 Equity and liabilities Equity shares of RM1 each Retained earings 150 250 108 177 258 427 Non-current liabilities 10% loan notes Nil 50 Current liabilities Trade payables Government grants 140 300 48 25 Total equity and liabilities 446 B02 Required: Calculate the following ratlos for Samsong and Huaway: (State the formulae used for calculating the ratios.) a. i. Gross profit percentage Net profit percentage Asset turnover ratio in. Current ratio V Quick ratio (acid test ratio) VI. Receivables collection period b. (18 marks) Compare and comment on the performance of the companies as indicated by the ratios you have calculated in part a. (7 marks)