Question

The following information relates to Megah Sdn. Bhd. for the financial year ended 31 May 2021: Cash Trade payables Trade receivables Sales Bank Carriage outwards Long-term loan Furniture at cost Land at cost Selling expenses Salaries Commission received Inventories as at 1 June 2020 Accumulated depreciation: Furniture Depreciation: Furniture Purchases Capital Inventories as at 31 May 2021 RM 90,000 100,000 50,000 400,000 10,000 3,000 140,000 90,000 300,000 25,000 25,000 10,000 20,000 28,000 8,000 240,000 183,000 30,000 This question paper consists of 4 questions on 8 printed pages. 8 ABFA1173 PRINCIPLES OF ACCOUNTING Question 4 (Continued) Required: (a) Calculate the following ratios for Megah Sdn. Bhd.: i. Quick ratio; (3 marks) ii. Gross profit margin; (3 marks) iii. Net profit margin: (3 marks) iv. Inventories turnover (in days); (2 marks) V. Trade payables turnover ratio; (2 marks) vi. Trade receivables turnover ratio. (2 marks) (b) Based on the ratios in part (a) above, comment on the financial performance of Megah Sdn. Bhd. (10 marks) [Total: 25 marks)