Question 5 Two companies Grappa Sdn Bhd and Grandma Sdn Bhd trade in the same market. Their financial statements for the year ended 30 September 2018 are summarised below: Statements of Comprehensive Income for the year ended 30 September 2018: Revenue Cost of sales Gross profit Operating expenses Finance costs - loan - overdraft - lease Profit before tax Income tax expense Profit for the year Note: dividends paid during the year Grappa RM'000 12,000 (10,500) 1,500 (240) (210) Nil Nil 1.050 (150) 900 Grandma RM'000 20,500 (16,000) 4,500 (500) (2,300) (10) (290) 1,400 (400) 1,000 250 700 Statement of Financial Position as at 30 September 2018 Grappa Grandma RM'000 RM'000 RM'000 RM'000 Non-current assets Freehold factory 4,400 Nil Owned plant 5,000 2,200 Leased plant Nil 5.300 9,400 7,500 Current assets Inventory 2,000 3,600 Trade receivables 2,400 3,700 Bank 600 5.000 Nil 7,300 Total assets 14,400 14,800 Equity and liabilities Equity shares of RM1 each Retained earnings 2,000 3,500 5,500 2,000 800 2,800 Nil Non-current liabilities Finance lease obligations 7% loan notes 10% loan notes 3,000 Nil 3,200 Nil 3,000 Deferred tax Government grants 600 1,200 100 Nil 4,800 6,300 Current liabilities Bank overdraft Trade payables Government grants Finance lease obligations Taxation Total equity and liabilities Nil 3,100 400 Nil 1,200 3,800 Nil 500 200 600 4.100 14.400 5,700 14.800 Required: (a) Calculate the following ratios for Grappa and Grandma (State the formulae used for calculating the ratios.) (1) Gross profit percentage (ii) Gearing percentage (iii) Asset turnover ratio (iv) Current ratio (v) Quick ratio (acid test ratio) (vi) Receivables collection period (24 marks) (b) Compare and comment on the performance of the companies as indicated by the ratios you have calculated in part (a). (6 marks) Question 6 Kopi Sdn Bhd's statement of comprehensive income for the year ended 31 December 2018 and statements of financial position at 31 December 2017 and 31 December 2018 were as following: KOPI SDN BHD STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2018 RM'000 RM'000 Revenue 720 Raw materials consumed 70 Staff costs 94 Depreciation 118 Loss on disposal of non-current asset 420 Interest payable Profit before tax Taxation Profit for the year 18 (300) KOPI SDN BHD STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2018 2017 Assets RM'000 RM'000 RM'000 RM000 Property, plant and equipment Cost 1,596 1,560 Depreciation 318 1,278 224 1,336 Current assets Inventory Trade receivables Bank 148 Total Assets 1,426 1470 So Equity and liabilities Capital and reserves Share capital Share premium Retained earnings 360 36 340 24 514 716 1,112 878 200 500 Non current liabilities Non-current loans Current liabilities Trade payables Taxation 114 1,426 -1,490 During the year, the company paid RM90,000 for a new piece of machinery. Dividends paid during 2018 totaled RM66,000 and interest paid was RM28,000. Required (a) Prepare a statement of cash flows for Kopi Sdn Bhd for the year ended 31 December 2018 in accordance with the requirements of MFR 107 Statement of Cash Flows, using the indirect method. (18 marks) (b) Prepare a statement of cash flows for Kopi Sdn Bhd for the year ended 31 December 2018 in accordance with the requirements of MFR 107 Statement of Cash Flows, using the direct method. (12 marks) Question 5 Two companies Grappa Sdn Bhd and Grandma Sdn Bhd trade in the same market. Their financial statements for the year ended 30 September 2018 are summarised below: Statements of Comprehensive Income for the year ended 30 September 2018: Revenue Cost of sales Gross profit Operating expenses Finance costs - loan - overdraft - lease Profit before tax Income tax expense Profit for the year Note: dividends paid during the year Grappa RM'000 12,000 (10,500) 1,500 (240) (210) Nil Nil 1.050 (150) 900 Grandma RM'000 20,500 (16,000) 4,500 (500) (2,300) (10) (290) 1,400 (400) 1,000 250 700 Statement of Financial Position as at 30 September 2018 Grappa Grandma RM'000 RM'000 RM'000 RM'000 Non-current assets Freehold factory 4,400 Nil Owned plant 5,000 2,200 Leased plant Nil 5.300 9,400 7,500 Current assets Inventory 2,000 3,600 Trade receivables 2,400 3,700 Bank 600 5.000 Nil 7,300 Total assets 14,400 14,800 Equity and liabilities Equity shares of RM1 each Retained earnings 2,000 3,500 5,500 2,000 800 2,800 Nil Non-current liabilities Finance lease obligations 7% loan notes 10% loan notes 3,000 Nil 3,200 Nil 3,000 Deferred tax Government grants 600 1,200 100 Nil 4,800 6,300 Current liabilities Bank overdraft Trade payables Government grants Finance lease obligations Taxation Total equity and liabilities Nil 3,100 400 Nil 1,200 3,800 Nil 500 200 600 4.100 14.400 5,700 14.800 Required: (a) Calculate the following ratios for Grappa and Grandma (State the formulae used for calculating the ratios.) (1) Gross profit percentage (ii) Gearing percentage (iii) Asset turnover ratio (iv) Current ratio (v) Quick ratio (acid test ratio) (vi) Receivables collection period (24 marks) (b) Compare and comment on the performance of the companies as indicated by the ratios you have calculated in part (a). (6 marks) Question 6 Kopi Sdn Bhd's statement of comprehensive income for the year ended 31 December 2018 and statements of financial position at 31 December 2017 and 31 December 2018 were as following: KOPI SDN BHD STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2018 RM'000 RM'000 Revenue 720 Raw materials consumed 70 Staff costs 94 Depreciation 118 Loss on disposal of non-current asset 420 Interest payable Profit before tax Taxation Profit for the year 18 (300) KOPI SDN BHD STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2018 2017 Assets RM'000 RM'000 RM'000 RM000 Property, plant and equipment Cost 1,596 1,560 Depreciation 318 1,278 224 1,336 Current assets Inventory Trade receivables Bank 148 Total Assets 1,426 1470 So Equity and liabilities Capital and reserves Share capital Share premium Retained earnings 360 36 340 24 514 716 1,112 878 200 500 Non current liabilities Non-current loans Current liabilities Trade payables Taxation 114 1,426 -1,490 During the year, the company paid RM90,000 for a new piece of machinery. Dividends paid during 2018 totaled RM66,000 and interest paid was RM28,000. Required (a) Prepare a statement of cash flows for Kopi Sdn Bhd for the year ended 31 December 2018 in accordance with the requirements of MFR 107 Statement of Cash Flows, using the indirect method. (18 marks) (b) Prepare a statement of cash flows for Kopi Sdn Bhd for the year ended 31 December 2018 in accordance with the requirements of MFR 107 Statement of Cash Flows, using the direct method. (12 marks)