a) Calculate the following ratios for years 2021 and 2022. i) Current ratio ii) Quick ratio...

 

  

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a) Calculate the following ratios for years 2021 and 2022. i) Current ratio ii) Quick ratio iii) Debt ratio iv) Inventory turnover v) Times interest earned vi) Fixed asset turnover vii) Net profit margin viii) Return on equity (16) b) Summarise the performance of the firm based on the relevant profitability and debt ratios in part (a). HENSEM BERHAD INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2021 AND 2022 Sales (credit) Less: Cost of goods sold Gross profit Less: General expenses Operating profit Interest expense Net profit before taxes Taxes Net profit after taxes 2021 (RM'000) 2022 (RM'000) 450,000 600,000 360,000 460,000 90,000 46,000 44,000 10,000 34,000 9,000 25,000 140,000 60,000 80,000 8,000 72,000 18,000 54,000 a) Calculate the following ratios for years 2021 and 2022. i) Current ratio ii) Quick ratio iii) Debt ratio iv) Inventory turnover v) Times interest earned vi) Fixed asset turnover vii) Net profit margin viii) Return on equity (16) b) Summarise the performance of the firm based on the relevant profitability and debt ratios in part (a). HENSEM BERHAD INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2021 AND 2022 Sales (credit) Less: Cost of goods sold Gross profit Less: General expenses Operating profit Interest expense Net profit before taxes Taxes Net profit after taxes 2021 (RM'000) 2022 (RM'000) 450,000 600,000 360,000 460,000 90,000 46,000 44,000 10,000 34,000 9,000 25,000 140,000 60,000 80,000 8,000 72,000 18,000 54,000

Answer rating: 100% (QA)

To calculate the ratios for the years 2021 and 2022 well use the provided information from the income statements Here are the calculations a Ratios for the years 2021 and 2022 i Current Ratio Current ... View the full answer