The financial statements for year 2020 for Huru Hara Berhad are provided below: Statement of Financial...

Transcribed Image Text:

The financial statements for year 2020 for Huru Hara Berhad are provided below: Statement of Financial Position Income Statement Cash Accounts receivable Inventory Total non-current assets Total assets Accounts payable Accrued expenses Total non-current liabilities Total shareholders equities Total liabilities and equities RM 200,000 140,000 220,000 490,000 1,050,000 i. Time interest earned ii. Total debt ratio iii. Return on assets 180,000 126,000 240,000 504,000 1,050,000 Sales (all credit) Cost of goods sold Operating expenses Interest expenses Income taxes Net income 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: 16.30 times 60.00% 3.50% RM 368,000 120,000 140,000 8,000 32,000 68,000 b. Based on your calculation in part (a), interpret the performance of Huru Hara Berhad compared to the industry average for debt management and profitability ratios. The financial statements for year 2020 for Huru Hara Berhad are provided below: Statement of Financial Position Income Statement Cash Accounts receivable Inventory Total non-current assets Total assets Accounts payable Accrued expenses Total non-current liabilities Total shareholders equities Total liabilities and equities RM 200,000 140,000 220,000 490,000 1,050,000 i. Time interest earned ii. Total debt ratio iii. Return on assets 180,000 126,000 240,000 504,000 1,050,000 Sales (all credit) Cost of goods sold Operating expenses Interest expenses Income taxes Net income 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: 16.30 times 60.00% 3.50% RM 368,000 120,000 140,000 8,000 32,000 68,000 b. Based on your calculation in part (a), interpret the performance of Huru Hara Berhad compared to the industry average for debt management and profitability ratios.