Question: 1. 2. GH Sdn Bhd. has a gross profit margin of 25% and sales of RM19,500,000 for the recent financial year. 75% of the

1. 2. GH Sdn Bhd. has a gross profit margin of 25% and sales of RM19,500,000 for the recent financial year.

1. 2. GH Sdn Bhd. has a gross profit margin of 25% and sales of RM19,500,000 for the recent financial year. 75% of the firm's sales are on credit and the remainder are on cash terms. Its current assets now stand at RM3,100,000, current liabilities at RM660,000 and cash in hand at RM320,000. a) b) c) If GHI Sdn Bhd's trade debtors balance is RM1,156,000, what is the firm's trade debtors average collection period? If GHI Sdn Bhd attempts to reduce its trade debtors collection period to 22 days, which should be the targeted level of trade debtors? What is the current ratio of GHI Sdn Bhd? The following are information for Jimat Sdn Bdh: a) Net profit margin of 8% Net profit of RM432,500 Trade debtors' balance of RM358,000 Assuming that 95% sales by Jimah Sdn Bhd are on credit terms, what is the firm's trade debtors turnover days?

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