Required:

(a) Identify and comment on FOUR (4) main trends shown by the above financial information without calculating any ratios. (8 marks)

(b) Calculate the following ratios for years 2021 and 2020 (accurate to 2 decimal places):

(i) Net profit margin

(ii) Quick ratio

(iii) Accounts payable payment days

(vi) Stock turnover ratio

(v) Debt ratio

(c) Write a report to the Managing Director of IBT Berhad to comment about the performance of the company in terms of profitability, liquidity, and efficiency using the calculated in part 

(b) and any additional information provided in the financial statement.

The following are the final statements of IBT Berhad for Year 2021 and Year 2020. IBT Berhad Statement of Profit or Loss and for the year ended 31 March ... 2021 2021 2020 2020 RM RM 835,000 (5,000) 830,000 RM RM Sales Less: Return Inward Net Sales Less: Cost of goods sold Opening Stock Add: Purchases 795,000 (3000) 792,000 98,000 669,000 767,000 (55,000) (712,000) 118,000 (54,000) 64.000 68,000 600,000 668,000 (98,000) Less: Closing Inventory (570,000) 222,000 (131,000) 91,000 Gross Profit Less: Expenses Net Profit I Berhad Statement of Financial Position as at 31 March .... 2021 2021 2020 2020 ASSETS Non-current assets Equipment & Fixtures Less : Accumulated depreciation RM RM RM RM 180,000 280,000 (20,000) (16,000) 160,000 264,000 Current assets Inventories Accounts receivables Bank Total assets 55,000 44,000 95,000 98,000 28,000 32,000 194,000 354,000 158,000 422,000 EQUITY AND LIABILITY Equity Capital Add: Net profit Less: Drawing Total Equity 192,000 64,000 (2,000) 248,000 91,000 (3,000) 254,000 336,000 Non-current liability Term loan Total non-current liability 20.000 30,000 20,000 30,000 Current liabilities Accounts payables Total current liabilities Total liabilities 80,000 56,000 56,000 86,000 80,000 100,000 354,000 Total equity and liabilities 422,000