Additional information:

1. The fixed dividend on the preference shares in Bulabi Bhd is 7%. The fixed dividend on the preference shares in Green Cable Bhd is 6%.
2. At 30 June 2020, the market value of an ordinary share in Bulabi Bhd was RM3. At 30 June 2020, the market value of ordinary share in Green Cable was RM2.

You are required to calculate the following ratios for each firm (correct to 2 decimal places).

1. Return on capital employed.

2. Turnover to fixed assets;

3. Rate of stock turnover (in times);

4. Gross profit ratio;

5. Net profit ratio;

6. Dividend yield;

7. Dividend cover;

8. Earnings per share;

9. Price/earnings ratio;

10. Capital gearing ratio.

Question 1 Income Statement for the year ended 30th June 2020 BULABI BHD RM RM GREEN CABLE BHD RM RM Sales Cash 160,000 90,000 2,348,800 2,508,800 1,400,000 1,490,000 Credit Less Cost of sales Opening inventory 150,000 160,000 Purchases 2,220,000 1,212,000 2,370,000 1,372,000 Less Closing inventory 140,000 2,230,000 180,000 1,192,000 Gross profit Less Expenses Net Profit before Interest Interest on Debentures Net Profit before Taxation Corporation Tax Net Profit after Taxation Add Profit and Loss 278,800 25,080 253,720 35,000 218,720 54,680 164,040 5,000 169,040 298,000 14,870 283,130 6,250 276,880 69,220 207,660 6,500 214,160 Ordinary Dividend 19,500 84,000 Preference Dividend 1,050 1,200 130,000 120,000 Transfer to General reserve Unappropriated Profit 150,550 18,490 205,200 8,960 Question 1 Income Statement for the year ended 30th June 2020 BULABI BHD RM RM GREEN CABLE BHD RM RM Sales Cash 160,000 90,000 2,348,800 2,508,800 1,400,000 1,490,000 Credit Less Cost of sales Opening inventory 150,000 160,000 Purchases 2,220,000 1,212,000 2,370,000 1,372,000 Less Closing inventory 140,000 2,230,000 180,000 1,192,000 Gross profit Less Expenses Net Profit before Interest Interest on Debentures Net Profit before Taxation Corporation Tax Net Profit after Taxation Add Profit and Loss 278,800 25,080 253,720 35,000 218,720 54,680 164,040 5,000 169,040 298,000 14,870 283,130 6,250 276,880 69,220 207,660 6,500 214,160 Ordinary Dividend 19,500 84,000 Preference Dividend 1,050 1,200 130,000 120,000 Transfer to General reserve Unappropriated Profit 150,550 18,490 205,200 8,960