This question paper consists of ONE (1) section only. (40 Marks) There are TWO (2) questions in this section. Answer ALL questions. Question 1 Rose-Jewel selis Jewellery through retail stores throughout the country. Over the last two years it has experienced declining profitability and is wondering if this is related to the sector as a whole. It has recently subscribed to an agency that produces average ratios across many businesses. Below are the ratios that have been provided by the agency for Rose-Jewel's business sector based on a year end of 30 September 2019, Equity and liabilities Equity Equity shares of RM1 each Property revaluation reserve Retained earnings 15,000 3,000 8.600 26,600 Non-current liabilities 10% loan notes 8,000 Current liabilities Trade payables Current tax payables Total equity and abilities 5,400 1.800 Z.200 41.800 Return on year-end capital employed (ROCE) 18.8% Net asset total assets less current liabilities) turnover 1.4 times Gross profit margin 35% Operating profit margin 12% Current ratio 1:25:1 Average inventory turnover 3 times Trade payables payment period 64 days Debt to equity 38% The financial statements of Rose-Jewel for the year ended 30 September 2019 are: Required: a) Prepare the equivalent ratios that have been provided by the agency for Rose-Jewel (8 marks) b) Assess the financial and operating performance of Rose-Jewel in comparison to its sector averages (12 marks) (Total: 20 Marks) Income Statement RM1000 RMODO 56,000 Revenue Opening inventory Purchases 8,300 43900 52,200 (10.2001 Closing Inventory Gross profit Operating costs Finance costs Profit before lax Income tax expense Profit for the year (42.000) 14,000 (9,800) (800 3,400 (1.000) 2.400 Statement of financial position RM'DOO RM000 Assets Non-current assets Property and shop fittings Deferred development expendituro 25,600 5.000 30,600 Current assets Inventory Bank Total assets 10,200 1.000 11.200 41.200 This question paper consists of ONE (1) section only. (40 Marks) There are TWO (2) questions in this section. Answer ALL questions. Question 1 Rose-Jewel selis Jewellery through retail stores throughout the country. Over the last two years it has experienced declining profitability and is wondering if this is related to the sector as a whole. It has recently subscribed to an agency that produces average ratios across many businesses. Below are the ratios that have been provided by the agency for Rose-Jewel's business sector based on a year end of 30 September 2019, Equity and liabilities Equity Equity shares of RM1 each Property revaluation reserve Retained earnings 15,000 3,000 8.600 26,600 Non-current liabilities 10% loan notes 8,000 Current liabilities Trade payables Current tax payables Total equity and abilities 5,400 1.800 Z.200 41.800 Return on year-end capital employed (ROCE) 18.8% Net asset total assets less current liabilities) turnover 1.4 times Gross profit margin 35% Operating profit margin 12% Current ratio 1:25:1 Average inventory turnover 3 times Trade payables payment period 64 days Debt to equity 38% The financial statements of Rose-Jewel for the year ended 30 September 2019 are: Required: a) Prepare the equivalent ratios that have been provided by the agency for Rose-Jewel (8 marks) b) Assess the financial and operating performance of Rose-Jewel in comparison to its sector averages (12 marks) (Total: 20 Marks) Income Statement RM1000 RMODO 56,000 Revenue Opening inventory Purchases 8,300 43900 52,200 (10.2001 Closing Inventory Gross profit Operating costs Finance costs Profit before lax Income tax expense Profit for the year (42.000) 14,000 (9,800) (800 3,400 (1.000) 2.400 Statement of financial position RM'DOO RM000 Assets Non-current assets Property and shop fittings Deferred development expendituro 25,600 5.000 30,600 Current assets Inventory Bank Total assets 10,200 1.000 11.200 41.200