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You are an intern working in Harvest International (HI). Currently, HI is interested to invest RM1,00,000 either in 7-eleven Malaysia Holdings Berhad or MYNEWS Holdings

You are an intern working in Harvest International (HI). Currently, HI is interested to invest RM1,00,000 either in 7-eleven Malaysia Holdings Berhad or MYNEWS Holdings Berhad. Your superior has asked you to interpret and compare the financial statements of both companies for the financial year 2017. Your team is required to produce an analysis report, which focuses on specific aspects of financial performance and financial position of both companies. Your report should contain the following: Prepare the following ratio calculations (choose 8 ratios) based on the 2017 financial statements Profitability net profit margin, return on capital employed, capital turnover. Liquidity current ratio, quick ratio Working capital trade receivables collection period, trade payables payment period, inventory turnover. Long-term solvency debt to assets ratio, gearing ratio, interest coverage. (16 marks) Analyze, interpret and compare the financial statements of both companies. (8 marks) Recommend to the manager whether to invest in 7-eleven or MYNEWS. And explain the limitations of your ratio analysis in part (b) above. (6 marks)

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