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YSL Corporation is serving its clients in the fashion and beauty industries for various products and services. Use some financial statement values in a ration

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YSL Corporation is serving its clients in the fashion and beauty industries for various products and services. Use some financial statement values in a ration analysis that compares as follows: YSL Corporation Income statement for the year ended December 31, 2020 RM YSL Corporation Balance sheet for the year ended December 31, 2020 RM Sales revenue 560,000 Cash 3,500 210,500 Account receivables 6,800 349,500 Inventory 2,500 116,700 Total current assets 12,800 - Cost of goods sold Gross profit (-) Operating expenses Operating profit (-) Taxes (40%) Net profit after taxes 232.800 Fixed assets 15.600 93.120 3.000 (-) Accumulated depreciation Total Assets 139.680 25,400 4.200 Account payable Notes payable 3,800 Accmnls S 300 2 / 4 LEED 116% y 6,800 Cost of goods sold Gross profit 210,500 Account receivables 349,500 Inventory 116,700 Total current assets 2,500 (-) Operating expenses 12,800 232.800 Fixed assets 15,600 Operating profit - Taxes (40%) Net profit after taxes 3,000 93,120 (-) Accumulated depreciation 139,680 Total Assets 25,400 4,200 Account payable Notes payable 3,800 Accruals 5,300 Total current liabilities 13,300 Long term debt 6,200 Common stock 4.200 Retained earnings 1.700 Total liabilities and shareholder 25,400 equity DO 3 / 4 116% Required: (a) Compute values for the following: (Note: Show your calculations) 2020 2021 0.80 0.75 90 times 2 days Ratio (1) Current ratio (ii) Acid-test ratio (iii) Inventory turnover (iv) Average collection period (v) Debt ratio (vi) Net profit margin (vii) Gross profit margin (viii) Return on assets (ix) Return on Equity 0.80 0.20 0.50 4 30 [15 marks] (b) Briefly explain for each type of ratios including the conclusion of the ratio analysis from part (a). [6 marks] (c) Prepare a pro forma income statement for the year ended December 31, 2021 by using a percent-of-sales method, if the company estimates that the sales for the 2021 financial year will be RM850,000. [8 marks]

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