QUESTION $3(50$ MARKS$)$

You have been hired as a financial analyst by CIMB Berhad. Your task is to analyse the present financial condition of Sejati Berhad. You are provided with the following $2021$ Statement of Financial Position and Statement of Profit or Loss information for Sejati Berhad. In addition, you are told that Sejati Berhad has $12,500,000$ shares of ordinary shares outstanding, currently trading at RM$11\mathrm{.}25$ per share, and has made annual purchases of RM$262,500,000.$

SEJATI BERHAD

STATEMENT OF PROFIT OR LOSS AND OTHER

COMPREHENSIVE INCOME

for the year ended $31$ December $2023$

$\backslash$table$[[,$RM$],[$Net Sales $($all credit$),375,000,000\mathrm{.}00],[$Less: Cost of Goods Sold,$312,500,000\mathrm{.}00],[$Earnings Before Interest and Taxed,$62,500,000\mathrm{.}00],[$Less: Interest Expense,$50,000,000\mathrm{.}00],[$Earnings before taxes,$12,500,000\mathrm{.}00],[$Less: Taxes $40\%,5,000,000\mathrm{.}00],[$Net Income,$7,500,000\mathrm{.}00]]$

SEJATI BERHAD

STATEMENT OF FINANCIAL POSITION

as at $31$ December $2023($RM$)$

$\backslash$table$[[,$RM$,,$RM$],[$Cash$,6,250,000\mathrm{.}00,$Account payable,$18,750,000\mathrm{.}00],[$Account Receivable,$25,000,000\mathrm{.}00,$Notes Payable,$25,000,000\mathrm{.}00],[$Inventory$,50,000,000\mathrm{.}00,$Total Current Liabilities,$43,750,000\mathrm{.}00],[$Total Current Asset,$81,250,000\mathrm{.}00,$Long Term Debt,$125,000,000\mathrm{.}00],[$Net Fixed Asset,$168,750,000\mathrm{.}00,$Shareholder's Equity,$81,250,000\mathrm{.}00],[$Total Assets,$250,000,000\mathrm{.}00,$Total Liabilities and Equity,$250,000,000\mathrm{.}00]]$