Regain Berhad manufactures solar panel for local market. As a financial manager of Regain Berhad, you...
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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: Interest expense Particulars Tax expense Land, Building and Equipment (NBV) Cash Marketable securities Account receivables Inventories Account payable Trade payables Long term Loan Ordinary Shares Retained earnings RM 2,800,000 500,000 1,808,000 70,000 106,000 3,819,000 300,000 100,000 879,000 87,000 500,000 600,000 700,000 600,000 2,785,000 (b) Inventory turnover Average collection period Debt to equity ratio Net profit margin Total assets turnover Quick ratio Current ratio Gross profit margin (c) 31 December 2019 4.3 times 130 days 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. (8 marks) 88% 7.5% Discusses the limitation of financial ratios analysis. (3 marks) 0.4 times 1.19 times 1.22 times 15% Calculate the above ratios for Regain Berhad for the year ended 31 December 2020. (8 marks) 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: Interest expense Particulars Tax expense Land, Building and Equipment (NBV) Cash Marketable securities Account receivables Inventories Account payable Trade payables Long term Loan Ordinary Shares Retained earnings RM 2,800,000 500,000 1,808,000 70,000 106,000 3,819,000 300,000 100,000 879,000 87,000 500,000 600,000 700,000 600,000 2,785,000 (b) Inventory turnover Average collection period Debt to equity ratio Net profit margin Total assets turnover Quick ratio Current ratio Gross profit margin (c) 31 December 2019 4.3 times 130 days 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. (8 marks) 88% 7.5% Discusses the limitation of financial ratios analysis. (3 marks) 0.4 times 1.19 times 1.22 times 15% Calculate the above ratios for Regain Berhad for the year ended 31 December 2020. (8 marks)
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a Statement of Profit or Loss for the year ended 31 December 2020 Sales all credit RM 2800000 Cost of Sales RM 1808000 Gross Profit RM 992000 Operating expenses Operating Expenses RM 1808000 Interest ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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