Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cempaka Corporation's financial statements (in RM '000): Balance Sheet (RM 9000) Assets 2020 2019 Cash 14,000 13,000 Accounts receivable 30,000 25,000 Inventories 28.125 21,000 Total

image text in transcribed
image text in transcribed
Cempaka Corporation's financial statements (in RM '000): Balance Sheet (RM 9000) Assets 2020 2019 Cash 14,000 13,000 Accounts receivable 30,000 25,000 Inventories 28.125 21,000 Total current assets 72,125 59,000 Net fixed asset Total assets 50 000 122, 125 47,000 106,000 Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities 10,800 7,600 6.700 25,100 9,000 6,000 5,150 20,150 Long-term debt Total liabilities 15.000 40.100 15,000 35,150 Common stock Retained earnings Total equity Total liabilities and equity 50,000 32.025 82.025 122, 125 50,000 20,850 70,850 106,000 Income Statement (RM '000) Net sales Operating costs excluding depreciation Depreciation Earnings bef. interest and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes (40%) Net income 214,000 170,000 5.000 39,000 1.750 37,250 14.900 22,350 Income Statement (RM '000) Net sales Operating costs excluding depreciation Depreciation Earnings bef. interest and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes (40%) Net income 214,000 170,000 5.000 39,000 1.750 37,250 14.900 22,350 Other data: Shares outstanding Common dividends Year-end stock price 5 million RM11,750 RM42.30 Required: a) Measure the effectiveness of Cempaka Corporation in managing its asset by providing the relevant ratios. And briefly explain the measurements. b) Measure the effectiveness of Cempaka Corporation in managing its debt by providing the relevant ratios. And briefly explain the measurements

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Finance Demystified

Authors: Troy Adair

1st Edition

0071459103, 9780071459105

More Books

Students also viewed these Accounting questions

Question

The relevance of the information to the interpreter

Answered: 1 week ago

Question

The background knowledge of the interpreter

Answered: 1 week ago