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The following are the financial information This company is involved in producing informati mation of OHPO Company that you are interested to invest. normation technology

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The following are the financial information This company is involved in producing informati mation of OHPO Company that you are interested to invest. normation technology (IT) products for high end users. The beginning-of-year statement of financial position information are as follow OHPO Co. RM Account Receivable, net 81,300 Inventory 161,100 Total assets 573,750 Share Capital 309,000 Retained Earning 140,400 The current year-end statement of financial position information is as follow: OHPO Co. Assets RM Cash 61,800 Account Receivable, net 86,100 Inventory 198,750 Prepaid Expense 10,425 Property, plant and equipment, net 456,600 813,675 Total assets Liabilities and Equities Current Liabilities 2 years Loan Share Capital Retained Earnings Total liabilities and equity 139,950 151,500 309,000 213,225 813,675 information from the current year's statement of profit or loss: OHPO Co. RM Sales 1,320,300 Cost of goods sold 948,750 Interest expense 19,500 Income tax expense 36,450 Profit for the year 315,600 You have obtained the financial ratios of WIWO Company, a close competitor to OHPO Co., of which you are also considering to invest. Required: (a) Complete the table below by calculating the stated ratios for OHPO Co. Show all your workings. Round your answer up to 2 decimal places. OHPO Co. Financial Ratios: 1. Current ratio ii. Acid test ratio iii. Account Receivable turnover iv. Inventory turnover V. Average days in inventory vi. Profit margin vii. Return on asset viii. Return on ordinary shareholders' equity ix. Debt to equity ratio X. Debt to total assets ratio WIWO Co. 2.534 1.076 22.92 8.356 43.68 days 21% 39% 55.80% 46.9% 32% (10 marks) Thi As a short term investor, identify the company you consider to be better in terms of liquidity and justify your answer. (2 marks) (C) Assuming the following information: OHPO Co. RM 29 RM 5.30 WIWO Co. RM26 RM 6 RM 4.69 28.85 23% Share Price as at December 31, 2016 Cash dividend paid Earnings Per Share Price-Earnings Ratio Dividend Yield RM 5.29 Compute the price-earnings ratio and dividend yield, where dividend yield is recognised as (2 marks) cash return per share. (d) Identify which company's shares you think would be worth to invest and justify your (5 marks) selection Total : 19 marks

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