End-of-Module Assessment (201920) (Semester 2) Moduls Code Title: BUSJ006 Accounting Programme Code/Year: Various (BA114*** and BA124***). cxcept BA124009 SECTION A: Short Questions. (Total 25 marks) Al. The following data are extracted from the financial statements of Giant Limited and Wealth Limited for the year ended 31 December 2019. Ordinary share capital Bank loans, repayable on 1 June 2023 Operating expenses Non-current assets Trade receivables Trade payables Giant Limited S'000 150,000 84.000 83,400 175.600 23,200 32.340 52,500 16,440 278,000 144,560 Wealth Limited S'000 150.000 90,000 95.160 194,120 77,930 121.640 7.230 82.360 366.000 204,960 Inventory, at 31 December 2019 Sales Cost of sales Note: Giant Limited and Wealth Limited manufacture and sell similar goods in the same industry with a similar size and structure. Both companies buy and sell goods on credit Required: (a) Calculate the following ratios for both Giant Limited and Wealth Limited for the year ended 31 December 2019 (Round off non-integers to two decimal places.) (i) Gross profit margin; (1) Net profit margin: (iii) Current ratio: (iv) Quick ratio, and (v) Inventory turnover (in times) [using closing inventory] Note: Formula and workings for calculation are required. (10 marks) (b) Comment on the financial performance of both companies based on the profitability and liquidity ratios calculated in (a) above. (5 marks) (Total 15 marks)