Bunga Lawang Sdn. Bhd. has gathered its balance sheet for years 2020 and 2021 as shown...

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Bunga Lawang Sdn. Bhd. has gathered its balance sheet for years 2020 and 2021 as shown below: You are required to: (a) (b) (c) (d) Current Assets: Cash Accounts Receivable Inventory Fixed Assets: Furniture Total Assets Current Liabilities: Accounts Payable Accrued Expenses Long Term Debt 2020 (RM) 2021 (RM) 150,000 140,000 80,000 110,000 70,000 500,000 800,000 80,000 570,000 900,000 160,000 200,000 80,000 100,000 Calculate the current ratio for 2020 and 2021. 180,000 180,000 Equity 380,000 420,000 Total Liabilities and Equity 800,000 900,000 Calculate the net working capital for 2020 and 2021. (6) (6) Based on your answer in (a) and (b) above, what can you conclude about the company's liquidity position? Discuss the relationship between a company's liquidity and its returns. (4) (4) Bunga Lawang Sdn. Bhd. has gathered its balance sheet for years 2020 and 2021 as shown below: You are required to: (a) (b) (c) (d) Current Assets: Cash Accounts Receivable Inventory Fixed Assets: Furniture Total Assets Current Liabilities: Accounts Payable Accrued Expenses Long Term Debt 2020 (RM) 2021 (RM) 150,000 140,000 80,000 110,000 70,000 500,000 800,000 80,000 570,000 900,000 160,000 200,000 80,000 100,000 Calculate the current ratio for 2020 and 2021. 180,000 180,000 Equity 380,000 420,000 Total Liabilities and Equity 800,000 900,000 Calculate the net working capital for 2020 and 2021. (6) (6) Based on your answer in (a) and (b) above, what can you conclude about the company's liquidity position? Discuss the relationship between a company's liquidity and its returns. (4) (4)

Answer rating: 100% (QA)

Lets calculate the net working capital current ratio and then discuss the companys liquidity position and the relationship between liquidity and retur... View the full answer