Tasik Kecil Berhad has recently applied for a loan from the Secondhand Bank. The company is planning for an expansion. Tasik Kecil Berhads financial statements for the recent year are as follows:

Tasik Kecil Berhad Statement of Financial Position As At 31 December 2019 (in RM)
Cash	1 500	Account payables	22 000
Account receivables	25 000	Accrued expenses	8 000
Inventories	45 000	Short-term notes payable	39 000
	71500		69000
Plant and equipment	116 050	Long-term debt	22 950
Less: Accumulated depreciation	38 000
		Common stock	310 50
		Retained earnings	26 550
Total assets	149 550	Total liabilities and owners equity	149 550

Income Statement For The Year Ended 31 December 2019 (in RM)

Net sales (all credit)		160 000
Less: cost of goods sold		106 000
Gross profit		54 000
Less: operating expenses	37 000
Interest expense	6 100	43 100
Earnings before taxes		10 900
Income taxes		4 360
Net income		6 540

a) Calculate the financial ratios for 2019. 10 Marks

1) Current ratio

2) Return on common equity

3) Acid test ratio

4) Gross profit margin

5) Inventory turnover

6) Net profit margin

7) Fixed asset turnover

8) Debt ratio

9) Average collection period

10) Time interest earned

b) Base on the given industry average ratios provided below, make an analysis, and compare the companys 2019 performance against industry average ratio: 10 Marks

Current ratio	1.8 times	Return on common equity	9.5%
Acid test ratio	0.7 times	Gross profit margin	38%
Inventory turnover	2.5 times	Net profit margin	3.5%
Fixed asset turnover	2.5 times	Debt ratio	65%
Average collection period	37 days	Time interest earned	3.8 times

c) Based on your finding in (a) would Secondhand Bank grant the loan the loan to Tasik Kecik Berhad? Why or why not?