INCOME STATEMENT FOR YEAR ENDED 31ST DECEMBER 2022 TRANSPORT SDN BHD RM'000 Net Sales Cost of...

 

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INCOME STATEMENT FOR YEAR ENDED 31ST DECEMBER 2022 TRANSPORT SDN BHD RM'000 Net Sales Cost of sales Gross profit Selling & admin. Expenses Research expenses Other expenses Other income EBIT Interest expense EBT Provision for income tax NET INCOME 100,000 45,000 55,000 22,000 2,500 700 (200) 30,000 600 29,400 300 29,100 WAREHOUSE SDN BHD RM'000 200,000 70,000 130,000 53,000 4,200 1,100 (300) 72,000 600 71,400 300 71,100 Required a) Two ratios to compare the profitability of the the two companies b) Two ratios to compare the liquidity of the two companies c) Comment on the businesses, using the ratios prepared for (a) and (b) d) Based on the above analysis advice where would you invest and why? You may also include other qualitative factors INCOME STATEMENT FOR YEAR ENDED 31ST DECEMBER 2022 TRANSPORT SDN BHD RM'000 Net Sales Cost of sales Gross profit Selling & admin. Expenses Research expenses Other expenses Other income EBIT Interest expense EBT Provision for income tax NET INCOME 100,000 45,000 55,000 22,000 2,500 700 (200) 30,000 600 29,400 300 29,100 WAREHOUSE SDN BHD RM'000 200,000 70,000 130,000 53,000 4,200 1,100 (300) 72,000 600 71,400 300 71,100 Required a) Two ratios to compare the profitability of the the two companies b) Two ratios to compare the liquidity of the two companies c) Comment on the businesses, using the ratios prepared for (a) and (b) d) Based on the above analysis advice where would you invest and why? You may also include other qualitative factors

Answer rating: 100% (QA)

a Profitability 1 Gross Margin Ratio GMR This ratio measures the companys ability to generate profits from its sales It is calculated by dividing gros... View the full answer