Question: Please help me answer this question by giving a full answer and calculation path. You work as a financial analyst in Ku-Ma Bank. You are

 Please help me answer this question by giving a full answer

Please help me answer this question by giving a full answer and calculation path.

You work as a financial analyst in Ku-Ma Bank. You are required to compare the performance of Bartho Company with the industry because they are applying for a loan from Ku-Ma Bank. The following are the financial statements given by Bartho Company. BARTHO COMPANY STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2021 (RM) Cash 35,000 Account payable 500,000 Marketable securities Notes payable 40,000 25,000 350,000 Account receivable Long Term Debt 700,500 Inventories 300,000 Common stock 78,000 Fixed assets 1,400,500 Paid in Capital 370,000 Retained earnings 422,000 TOTAL ASSETS 2,110,500 TOTAL LIAB. & EQUITY 2,110,500 BARTHO COMPANY INCOME STATEMENT FOR THE YEAR ENDING 31 DECEMBER 2021 (RM) Sales 1,946,200 Less: Cost of goods sold 1,310,000 Gross Profit 636,200 Less: Selling expenses 325,100 Earnings before interest and tax 311,100 84,500 Less Interest expenses Earnings before tax Less : Taxes 226,600 55,600 Earnings after taxes 171,000 INDUSTRY AVERAGE RATIOS Current ratio Total Asset turnover 2.30 times 1.30 times Quick ratio Average collection period Net Profit Margin 2.50 times 23 days 35.00% 75.00% Debt ratio 55.00% Times Interest Earned 12.00 times Return on assets Based on the above financial statements and industrial average ratios, a) Calculate the indicated ratios for the Bartho Company. (12 marks) b) Evaluate the overall performance of the company according to liquidity, activity, profitability and leverage ratios. (8 marks)

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