The following are the financial statements of Tools and Parts Engineering Berhad for the 2 Years ended 31st December.

1. Calculate the following ratios for each year (correct to 2 decimal places).

1. Gross profit ratio
2. Net profit ratio
3. Current ratio
4. Acid test ratio
5. Return on Capital Employed

Question 2 2 TOOLS AND PARTS ENGINEERING BERHAD Statement of Financial Position as at 31 December 2020 The following are the financial statements of Tools and Parts Engineering Berhad for the 2 Years ended 31 December 2019 RM 2020 RM RM 2,130,000 RM 2,997,470 Net Non-current assets Current Assets TOOLS AND PARTS ENGINEERING BERHAD Income Statement for the year ending 31st December 2020 Stock 60.000 75,000 2019 RM Debtors/ Accounts Receivables 2020 RM 206,000 250,000 RM 2,500,000 RM 2,800,000 Revenue Bank Balance 168,000 133,580 434,000 458,580 Less Cost of Sales Current Liabilities Inventory at 1 Jan 50,000 55,000 Creditors 46,000 61,000 Add Purchases 700,000 810,000 Corporation Tax 273,750 295,500 750,000 865,000 Long Term Loan Interest Due 5,000 5,000 60,000 75,000 Common Stock Dividend Due 13.200 23,000 Preference Dividend Due 18,000 18,000 Less Closing inventory Gross Profit Less Expenses Profit before Interest Less Interest on Long Term Loan Profit before Taxation Less Corporation Tax Profit after Tax Add Retained Earnings 355,950 78,050 402,500 690,000 1,810,000 710,000 1,100,000 5,000 1,095,000 273,750 821,250 8,000 829,250 790,000 2,010,000 823,000 1,187,000 5,000 1,182,000 295,500 886,500 748,050 1,634,550 2.208,050 56,080 3,053,550 Less Long Term Liabilities 5% Long Term Loan 100,000 2,108,050 100,000 2,953,550 Financed by Issued Share Capital Common Stock Dividend 13,200 23,000 Common stock of RM1 each 600,000 600,000 Preference Dividend 18,000 18,000 6% Preference Shares of RM1 each 300,000 900.000 300,000 900,000 50,000 110,000 Transfer to General Reserve Unappropriated Profit 81,200 748,050 151,000 1,483,550 Reserves General 460,000 570,000 1,483,550 2,053,550 Retained Earnings 748,050 1,208,050 2.108,050 2,953,550