The Statement of Financial Position and Comprehensive Income Statement for Janice is presented below. Statement of...

  

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The Statement of Financial Position and Comprehensive Income Statement for Janice is presented below. Statement of Financial Position (000) Cash Accounts receivable Inventories Current assets Net fixed assets Total Assets Accounts payable Bank note Total current liabilities long-term debt Common stock Retained earnings Total liabilities and owners' equity RM 500 1,500 500 2,500 5,000 7,500 1,200 300 1,500 4,000 300 1,700 7,500 Comprehensive Income Statement (000) Net sales Cost of goods sold Gross profit Operating expenses Net operating income Interest expense Earnings before taxes Income tax (34%) Net income 8,500 (3,400) 5,100 (2,900) 2,200 (580) 1,620 (551) 1,069 (a) Compute the following ratios: current ratio, acid test ratio, debt ratio, total asset turnover, operating profit margin, return on total assets, times interest earned and Inventory turnover. (18 marks) (b) All other things equal, compute the ringgit amount of sales needed to achieve an 18% return on total assets for the coming year. (4 marks) (c) Given Janice's inventory turnover ratio is 7, compute the current level of inventory given this ratio by assuming the cost of goods sold is RM3,400. (3 marks) The Statement of Financial Position and Comprehensive Income Statement for Janice is presented below. Statement of Financial Position (000) Cash Accounts receivable Inventories Current assets Net fixed assets Total Assets Accounts payable Bank note Total current liabilities long-term debt Common stock Retained earnings Total liabilities and owners' equity RM 500 1,500 500 2,500 5,000 7,500 1,200 300 1,500 4,000 300 1,700 7,500 Comprehensive Income Statement (000) Net sales Cost of goods sold Gross profit Operating expenses Net operating income Interest expense Earnings before taxes Income tax (34%) Net income 8,500 (3,400) 5,100 (2,900) 2,200 (580) 1,620 (551) 1,069 (a) Compute the following ratios: current ratio, acid test ratio, debt ratio, total asset turnover, operating profit margin, return on total assets, times interest earned and Inventory turnover. (18 marks) (b) All other things equal, compute the ringgit amount of sales needed to achieve an 18% return on total assets for the coming year. (4 marks) (c) Given Janice's inventory turnover ratio is 7, compute the current level of inventory given this ratio by assuming the cost of goods sold is RM3,400. (3 marks)

Answer rating: 100% (QA)

a Lets calculate the requested ratios 1 Current Ratio Current Ratio Current Assets Current Liabilities Current Assets RM2500 Current Liabilities RM150... View the full answer