QUESTION 3 Regain Berhad manufactures solar panel for local market. As a financial manager of Regain Berhad, you are required to perform ratio analysis based on the financial information for the year ended 31 December 2020 provided below. Sales (all credit) Cost of Sales Operating expenses: Particulars RM 2,800,000 500,000 1,808,000 Interest expense 70,000 Tax expense 106,000 Land, Building and Equipment (NBV) 3,819,000 Cash 300,000 Marketable securities 100,000 Account receivables 879,000 Inventories 87,000 Account payable 500,000 Trade payables 600,000 Long term Loan 700,000 Ordinary Shares Retained earnings 600,000 2,785,000 Focus Inventory turnover Average collection period Debt to equity ratio Net profit margin Total assets turnover Quick ratio Current ratio Gross profit margin 31 December 2019 4.3 times 130 days 88% 7.5% 0.4 times 1.19 times 1.22 times 15% Use 360 days per year. (a) Using the financial information given above, construct Statement of Profit or Loss for the year ended 31 December 2020 and Statement of Financial Position as at 31 December 2020. (b) (8 marks) Calculate the above ratios for Regain Berhad for the year ended 31 December 2020. (8 marks) (c) Discusses the limitation of financial ratios analysis. (3 marks)