Use the information below to answer questions 7 to 10. Below is the balance sheet of...

 

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Use the information below to answer questions 7 to 10. Below is the balance sheet of Lagenda Sdn. Bhd for the years 2019 and 2020. 2020 Note RM'000 2019 RM'000 Note 2020 RM000 2019 RM'000 ASSETS Non-current assets Non-current liabilities Property, plant and equipment 5 10,268 11,253 Lease liabilities Right-of-use assets 6 5,685 6,612 Investment in subsidiaries Provisions 7 Investment in associates 8 19,696 15,748 Deferred tax liabilities 228 18 1,081 2,506 19 759 760 20 115 115 Investment securities 9 5,069 6,332 Other receivables 10 1,762 1,807 Total non-current liabilities 1,955 3,381 Total non-current assets 42,480 41,752 Current assets Current liabilities Inventories 11 3,587 2,602 Lease liabilities Contract assets Trade and other receivables 20 12 56,000 38,498 Contract liabilities 10 33,287 32,452 Provisions Amount due from subsidiaries 13 Tax recoverable 141 106 Trade and other payables Cash and cash equivalents 14 75,870 82,206 Amount due to a subsidiary 22222 18 1,442 1,363 12 5,522 9,549 19 596 595 21 21,609 13,440 13 Total current assets 168,885 Taxpayable 4,670 4,265 155,864 TOTAL ASSETS 211,365 197,616 Total current liabilities 33,839 29,212 EQUITY AND LIABILITIES Equity attributable to owners TOTAL LIABILITIES 35,794 32,593 of the Company TOTAL EQUITY AND LIABILITIES 211,365 197,616 Share capital 15 29,240 29,240 Treasury shares 16 (2,154) (1,747) Reserves 17 147,815 137,139 Total equity attributable to owners of the Company Non-controlling interests TOTAL EQUITY 174,901 670 164,632 391 175,571 165,023 7. Lagenda Sdn. Bhd. had 500 million shares outstanding at the end of 2020. Calculate its book value per share. 8. Using the most appropriate financial ratio, calculate whether Lagenda has enough liquidity to meet its short term obligation for the year 2020. 9. Using the most appropriate financial ratio, calculate whether Lagenda has enough liquidity to meet its short term obligation for the year 2019. 10. By comparing your answers to question 8 and question 9, assess the adequacy of Lagenda's liquidity. Use the information below to answer questions 7 to 10. Below is the balance sheet of Lagenda Sdn. Bhd for the years 2019 and 2020. 2020 Note RM'000 2019 RM'000 Note 2020 RM000 2019 RM'000 ASSETS Non-current assets Non-current liabilities Property, plant and equipment 5 10,268 11,253 Lease liabilities Right-of-use assets 6 5,685 6,612 Investment in subsidiaries Provisions 7 Investment in associates 8 19,696 15,748 Deferred tax liabilities 228 18 1,081 2,506 19 759 760 20 115 115 Investment securities 9 5,069 6,332 Other receivables 10 1,762 1,807 Total non-current liabilities 1,955 3,381 Total non-current assets 42,480 41,752 Current assets Current liabilities Inventories 11 3,587 2,602 Lease liabilities Contract assets Trade and other receivables 20 12 56,000 38,498 Contract liabilities 10 33,287 32,452 Provisions Amount due from subsidiaries 13 Tax recoverable 141 106 Trade and other payables Cash and cash equivalents 14 75,870 82,206 Amount due to a subsidiary 22222 18 1,442 1,363 12 5,522 9,549 19 596 595 21 21,609 13,440 13 Total current assets 168,885 Taxpayable 4,670 4,265 155,864 TOTAL ASSETS 211,365 197,616 Total current liabilities 33,839 29,212 EQUITY AND LIABILITIES Equity attributable to owners TOTAL LIABILITIES 35,794 32,593 of the Company TOTAL EQUITY AND LIABILITIES 211,365 197,616 Share capital 15 29,240 29,240 Treasury shares 16 (2,154) (1,747) Reserves 17 147,815 137,139 Total equity attributable to owners of the Company Non-controlling interests TOTAL EQUITY 174,901 670 164,632 391 175,571 165,023 7. Lagenda Sdn. Bhd. had 500 million shares outstanding at the end of 2020. Calculate its book value per share. 8. Using the most appropriate financial ratio, calculate whether Lagenda has enough liquidity to meet its short term obligation for the year 2020. 9. Using the most appropriate financial ratio, calculate whether Lagenda has enough liquidity to meet its short term obligation for the year 2019. 10. By comparing your answers to question 8 and question 9, assess the adequacy of Lagenda's liquidity.

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7 To calculate the book value per share we need to divide the total equity attributable to owners of the Company by the number of shares outstanding B... View the full answer