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The financial manager Katrina Sdn Bhd, a manufacturing firm, has decided to seek a line of credit from the Alliance Bank. This additional source of

The financial manager Katrina Sdn Bhd, a manufacturing firm, has decided to seek a line of credit from the Alliance Bank. This additional source of funds is needed to support a large portion of the firm's accounts payable during the next three months, which are the firm's peak seasonal sales period. The firm's most recent financial statements were presented to the bank in support of its loan request. 
Katrina Sdn Bhd
Income Statement for the Year ended 31 December 2019

RM RM
Sales (all credit)
2,400,000
Less : Cost of goods sold
1,840,000
Gross profits
560,00
Less : Operating expenses:

General and administrative 120,000
Depreciation expense 120,000 240,000
Operating profits
320,000
Less : Interest expense
40,000
Before-tax profits
280,000
Less : Taxes
84,000
After-tax profits
196,000


Katrina Sdn Bhd
Balance Sheet as at 31 December 2019

RM RM
Cash 56,000
Marketable securities 24,800
Accounts receivable 132,000
Inventories 336,000
Total current assets 548,800
Net fixed assets 1,080,000
Total Assets 1,628,800
Accounts payable
228,000
Notes payable
52,000
Other current payable
20,000
Total current liabilities
300,000
Long -termdebt
600,000
Total L..s@RM0.50par
500,000
Retained earnings
228,800
Total liabilities and shareholders' equity
1,628,800


The average industry rations are provided below to facilitate an analysis of the firm's loan request:

  1. Current ratio
  2. Quick ratio
  3. Inventory turnover ratio
  4. Average age of Inventory
  5. Average collection period
  6. Average Payment Period
  7. Total assets turnover
  8. Debt ratio
  9. Times interest earned
  10. Gross profit margin
  11. Operating profit margin
  12. Net Profit Margin
  13. Return on assets
  14. Return on equity
  15. Cash Conversion Cycle

Required:

Compute the above ratios for Katrina Sdn Bhd 2019.

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Financial Ratio Analysis for Katrina Sdn Bhd 2019 Liquidity Ratios Current Ratio Current Assets Current Liabilities 548800 RM 300000 RM 183 Quick Ratio Current Assets Inventory Current Liabilities 548... blur-text-image

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