QUESTION 3 (40 MARKS) Statements of comprehensive income for the year ended 30 June 2021: Sash Berhad Cotton Berhad RM 000 RM 000 Sales (all on credit) 24,000 14,000 Cost of sales 20,000 11,300 Gross Profit 4,000 2.700 Operating expenses 2.320 1710 Operating profit 1,680 990 Debenture interest paid 240 90 Loss on asset disposal 20 30 Profit before tax 1.420 870 Taxation 720 450 Profit after tax 700 420 Dividends paid 120 114 Retained profit for the year 580 306 Based on the financial statements above, calculate the following financial ratios for both Sash Berhad and Cotton Berhad () Gross profit margin (W) Operating profit margin (1) Net profit margin (iv) Current ratio () Quick ratio (vi) Receivables collection period (vii) Inventory turnover period (vii) Payables payment period (ix) Debt-to-equity ratio (*) Interest cover (30 marks) b) Prepare a short report giving your observations on the profitability, liquidity, efficiency (activity) and debt ratios of the two companies. (10 marks) Carton Bernd RMOOD RM000 4,500 1.560 2,540 3.180 1.560 6.O.O 9.000 Statements of financial position as at 30 June 2013 Sash Berhad RM600 RM 000 Non-current Property, pa & equipment 5,000 Less accurate depreciation 1.000 4.000 Current assets Inventory 2,000 Trade receivable Cash at bank 1.580 1570 8.670 Capital and reserves RM ordinary shares 2.000 Share premium 1.000 Retained prom 2.000 5.000 Non current les Debentures 1.200 Current Les Bank loan Trase pays 1420 2.370 8.67 2.250 520 6,300 480 900 1.320 2220 3.000