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. (7 marks)

Q1. RM 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 RM Sales 835,000 795,000 Less: Return Inward (5,000 (3000) Net Sales 830,000 792,000 Less: Cost of goods sold Opening Stock 98,000 68,000 Add: Purchases 669,000 600,000 767,000 668,000 Less: Closing Inventory (55,000 (712,000) (98,000) (570,000 Gross Profit 118,000 222,000 Less: Expenses (54,000) (131,000 Net Profit 64,000 91,000 2020 RM IBT Berhad Statement of Financial Position as at 31 March 2021 2021 2020 ASSETS RM RM RM Non-current assets Equipment & Fixtures 180,000 280,000 Less : Accumulated (20,000) (16,000) depreciation 160,000 Current assets Inventories 55,000 98,000 Accounts receivables 44,000 28,000 Bank 95,000 194,000 32,000 Total assets 354,000 264,000 158,000 422,000 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 80,000 56,000 Current liabilities Accounts payables Total current liabilities Total liabilities Total equity and liabilities 80,000 100,000 354,000 56,000 86,000 422,000