The financial statements for year 2020 for Duka Chita Berhad are provided below: Statement of Financial...
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The financial statements for year 2020 for Duka Chita Berhad are provided below: Statement of Financial Position Income Statement Cash Accounts receivable Inventory Total non-current assets Total assets Accounts payable Bank overdraft Total non-current liabilities Total shareholders equities Total liabilities and equities RM 150,000 350,000 600,000 1,900,000 3,000,000 150,000 250,000 1,200,000 1,400,000 3,000,000 Sales (all credit) Cost of goods sold Operating expenses Interest expenses Income taxes Net income iii. Total assets turnover iv. Average collection period V. Total debt ratio vi. Time interest earned From the information given, you are required to answer the following questions: a. Calculate the financial ratios for year 2020 corresponding to the industry average ratios provided below: i. Inventory turnover ii. Accounts receivable turnover RM 6,000,000 3,000,000 900,000 750,000 500,000 850,000 3.2 times 13.6 times 1.1 times 30 days 38% 5.2 times The financial statements for year 2020 for Duka Chita Berhad are provided below: Statement of Financial Position Income Statement Cash Accounts receivable Inventory Total non-current assets Total assets Accounts payable Bank overdraft Total non-current liabilities Total shareholders equities Total liabilities and equities RM 150,000 350,000 600,000 1,900,000 3,000,000 150,000 250,000 1,200,000 1,400,000 3,000,000 Sales (all credit) Cost of goods sold Operating expenses Interest expenses Income taxes Net income iii. Total assets turnover iv. Average collection period V. Total debt ratio vi. Time interest earned From the information given, you are required to answer the following questions: a. Calculate the financial ratios for year 2020 corresponding to the industry average ratios provided below: i. Inventory turnover ii. Accounts receivable turnover RM 6,000,000 3,000,000 900,000 750,000 500,000 850,000 3.2 times 13.6 times 1.1 times 30 days 38% 5.2 times
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1 Inventory Turnover Inventory turnover cost of goods soldaverage inventory Cost of goods sold RM 30... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-1119048541
11th Canadian edition Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy
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