QUESTION 2 (25 MARKS) a. The following is the Statement of Financial Position for Lentari Corporation as at 31 December 2021. RM Non-Current Assets Plant and equipment 1,250,000 Less: Accumulated depreciation 250.000 Net plant and equipment 1,000,000 Current Assets Cash Accounts receivable Inventory Total Assets 70,000 150,000 280,000 1,500,000 CONFIDENTIAL/2 FBA/PFS1313/NOV21 Equity and Reserves Common Stock Paid In Capital Retained Earnings 300,000 200,000 480,000 Liabilities Notes Payable Bonds Payable Accounts Payable Total Equity and Liabilities 120,000 300,000 100,000 1,500,000 Sales for 2021 are RM2,500,000 with the cost of goods sold is 55% of sales. Depreciation expense is 10% of the gross plant and equipment at the beginning of the year. Interest expense is 9% on the notes payable and 11% on the bonds payable. Selling and administrative expenses are RM250,000 and the firm's tax rate is 40% Required: Prepare a Statement of Profit or Loss for Lentari Corporation for the year ended 31 December 2021. (15 marks) b. b. Mutiara Sdn Bhd has a gross profit margin of 25% and sales of RM19,500,000 for the recent financial year. 75% of the firm sales are on credit and the remainders are on cash terms. Mutiara Sdn Bhd's current assets now stand at RM31,000,000, current liabilities RM660,000, account payable is RM 400,000 and cash in hand at RM300,000 Required: Based on the information above, calculate the followings (assume there are 365 days a year): i. Account receivable is RM1,500,000, what is the firm day in account receivables. (2 marks) ii. Suppose you are told that the inventory turnover is 7 times, what is Mutiara Sdn Bhd's cost of goods sold? (4 marks) ini. Based on the above information, calculate the current ratio for the Mutiara Sdn Bhd. (4 marks) CONFIDENTIAL/3 /3