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The management of D Setia Berhad, a property construction company has appointed Jamal to analyse the financial performance and position for the company for 2017

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The management of D Setia Berhad, a property construction company has appointed Jamal to analyse the financial performance and position for the company for 2017 and 2018 The year-end statement of financial position information is as follow: 2017 Assets RM Property, plant and equipment, net 154,000 Inventory 76,000 Prepaid expense 34,000 Account receivable, net 48,650 Cash 196,600 Total assets 508,650 2018 RM 158,000 45,000 56,000 56,064 215,000 530,064 Liabilities and Equities Share capital, no par value Retained earnings 2-year 8% Bonds payable Current liabilities Total liabilities and equity 120,000 50,000 156,780 181.870 508,650 168,700 50,000 156,780 154,584 530,064 The information from the current year's statement of profit or loss: 2017 RM Credit sales revenue, net 565,000 Cost of goods sold (254,000) Operating expenses (230,000) Interest expense (14,000) Income tax expense (25,000) Profit for the year 42.000 2018 RM 860,000 (398,000) (386,000) (24,000) (22,000) 30,000 *Note: Assume all assets stated in the information above reflect the average amount of the assets. Required: (a) Compute the following ratios for D Setia Berhad for 2017 and 2018 and present in table- format as shown below. Show all your workings. Round your answer up to 2 decimal places. 2017 2018 Financial Ratios: i. 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 (b) As an investor, identify the strength of the company in terms of liquidity, risk and return/reward to shareholders. Note: Formulae for the ratios are given in the appendix in the last page of the question paper

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