QUESTION Anggun Berhad plans to introduce a new product which requires the firm to raise RM10 million. The firm decided to borrow from Kaya Raya Bank for the required fund. As a financial manager, you have been asked by the top management to prepare a two-year financial analysis report as requested by the bank. ANGGUN BERHAD BALANCE SHEET AS AT 31 DECEMBER 2018 AND 2019 ASSETS 2018/RM 000) 2019 (RM7000) Cash 45.000 20.000 Marketable securities 8.000 16.000 Accounts receivable 42.000 34.000 Inventories 50.000 60.000 Non-current assets 285,000 270.000 Total Assets 430.000 450.000 LABILITIES AND EQUITY Accounts payable Notes payable Accruals Long-term debt Common shares Retained earnings Total Liabilities and Equity 48.000 16.000 6.000 160,000 150.000 50.000 430,000 50.000 10.000 5.000 150.000 160.000 75.000 450,000 ANGGUN BERHAD INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2018 AND 2019 2018 (RM7000) 2019 (RM000) Sales (credit) 450.000 600.000 Less: Cost of goods sold 360.000 460,000 Gross profit 90.000 140,000 Less: General expenses 46.000 60.000 Operating profil 44.000 80.000 Interest expense 10.000 8.000 Net profit before taxes 34.000 72.000 Taxes 9,000 18.000 Net profit after taxes 25.000 54.000 a) Calculate the following ratios for years 2018 and 2019. i) Current ratio ii) Quick ratio Debt ratio iv) Inventory tumover Times interest earned vi) Non-current asset tumover vii) Net profit margin viii) Return on equity b) Summarise the performance of the firm based on the profitability and debt ratios. c) Explain the weaknesses of financial ratios analysis in evaluating a company's performance