SERI FATIN SENDIRIAN BERHAD STATEMENT OF FINANCIAL POSITION AS AT 31st DECEMBER 2020 RM 15,000 Account payable RM 230,000 300,000 Accrued expenses Cash Marketable Securities Account Receivable Inventories Net plants & equipment 415,000 200,000 Notes payable Other current liability 75,000 135,000 100,000 1,070,000 Long term debt Ordinary shares Retained earnings 500,000 160,000 800,000 TOTAL ASSETS 2,000,000 TOTAL LIABILITY & EQUITY 2,000,000 SERI FATIN SENDIRIAN BERHAD STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDING 31st DECEMBER 2020 Sales Cost of Goods Sold Gross Profit Less Selling & Administrative expense Interest expense Earnings before taxes Less: Taxes Earnings after taxes RM 3,500,000 1.300,000 2,200,000 1,850,000 60,000 290,000 70,000 220,000 Page 6 of 10 Industry Average Ratios 2.0 x 1.8 x Gross profit margin Return on equity 8% 19% Current Ratio Quick ratio Average collection period Inventory turnover 40 days 8.4 X Debt ratio Time interest earned 45% 7.8 x I (a) Calculate the relevant ratios for Seri Fatin Sendirian Berhad Current ratio (2 marks) 11 Quick ratio (2 marks) Hi. Inventory turnover (2 marks)