Freshy Bhd is primarily engaged in the worldwide production, processing, distribution, and marketing of food products....

   

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Freshy Bhd is primarily engaged in the worldwide production, processing, distribution, and marketing of food products. Comparative financial statements of Freshy Bhd for the year 2015 and 2016 are as follows: Sales of goods Cost of sales Freshy Bhd Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 July 2016 Gross profit Other income Salary expenses Insurance expenses Depreciation expenses Advertising and visual expenses Interest expenses Loss on sale of fixed assets Other expenses profit before income tax expense Income tax expense Net Income 2016 (RM) 1,547,480 (980,854) 566,626 253,010 (276,740) (127,305) (58,315) (35,858) (11,706) (195,092) (82,822) 31,798 (3,754) 28,044 2015 (RM) 1,528,136 (988,158) 539,978 116,474 (259,431) (101,357) (37,930) (34,488) (12,259) (71,532) (80,869) 58,586 (22,778) 35,808 Current Assets: Cash Accounts receivable Inventories Prepaid insurance Total Current Assets Non-Current Assets: Land Building Equipment Total Non-Current Assets TOTAL ASSETS Current Liabilities: Trade and other payables Short-term provisions Tax liabilities Short-term borrowings Total Current Liabilities Non-Current Liabilities: Long-term borrowings Long-term provisions Freshy Bhd Statement of Financial Position as at 31 July 2016 Total Non-Current Liabilities TOTAL LIABILITIES Equity Share capital Retained earnings Total Equity TOTAL LIABILITIES & EQUITY 2016 (RM) 11,551 79,139 287,299 9,904 387,893 120,000 146,989 32,663 299,652 687,545 166,331 359 7,718 33,982 208,390 61,710 11,166 72,876 281,266 315,014 91,265 406,279 687,545 2015 (RM) 13,065 85,132 283,188 8,515 389,900 180,000 240,611 34034 454,645 844,545 177,602 2,266 18,380 35,409 233,657 190,355 10,801 201,156 434,813 315,014 94,718 409,732 844,545 REQUIRED: (a) Calculate each of the following ratios for the year 2016: (Round your answer to TWO (2) decimal places). (i) Current ratio Inventory turnover (ii) (iii) (iv) (v) (vi) (vii) Debt ratio Times interest earned Return on common shareholders' equity Return on assets Profit margin (9 Marks) Freshy Bhd is primarily engaged in the worldwide production, processing, distribution, and marketing of food products. Comparative financial statements of Freshy Bhd for the year 2015 and 2016 are as follows: Sales of goods Cost of sales Freshy Bhd Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 July 2016 Gross profit Other income Salary expenses Insurance expenses Depreciation expenses Advertising and visual expenses Interest expenses Loss on sale of fixed assets Other expenses profit before income tax expense Income tax expense Net Income 2016 (RM) 1,547,480 (980,854) 566,626 253,010 (276,740) (127,305) (58,315) (35,858) (11,706) (195,092) (82,822) 31,798 (3,754) 28,044 2015 (RM) 1,528,136 (988,158) 539,978 116,474 (259,431) (101,357) (37,930) (34,488) (12,259) (71,532) (80,869) 58,586 (22,778) 35,808 Current Assets: Cash Accounts receivable Inventories Prepaid insurance Total Current Assets Non-Current Assets: Land Building Equipment Total Non-Current Assets TOTAL ASSETS Current Liabilities: Trade and other payables Short-term provisions Tax liabilities Short-term borrowings Total Current Liabilities Non-Current Liabilities: Long-term borrowings Long-term provisions Freshy Bhd Statement of Financial Position as at 31 July 2016 Total Non-Current Liabilities TOTAL LIABILITIES Equity Share capital Retained earnings Total Equity TOTAL LIABILITIES & EQUITY 2016 (RM) 11,551 79,139 287,299 9,904 387,893 120,000 146,989 32,663 299,652 687,545 166,331 359 7,718 33,982 208,390 61,710 11,166 72,876 281,266 315,014 91,265 406,279 687,545 2015 (RM) 13,065 85,132 283,188 8,515 389,900 180,000 240,611 34034 454,645 844,545 177,602 2,266 18,380 35,409 233,657 190,355 10,801 201,156 434,813 315,014 94,718 409,732 844,545 REQUIRED: (a) Calculate each of the following ratios for the year 2016: (Round your answer to TWO (2) decimal places). (i) Current ratio Inventory turnover (ii) (iii) (iv) (v) (vi) (vii) Debt ratio Times interest earned Return on common shareholders' equity Return on assets Profit margin (9 Marks)