QUESTION 4 Part A E-Mart Sdn. Bhd. and Quick Mart Sdn Bhd are two companies of the same size, both running a chain of convenience stores. Each company depreciates its plant assets using straight-line method. An investigation of their financial statements reveals the following information: E-Mart Sdn. Bhd(RM) Quick Mart Sdn. Bhd. (RM) Net Income 129,050 129,800 Sales Revenue 890,000 1,100,000 Total assets (average) 4,340,000 5,490,000 Plant Assets (average) 1,650,000 1,900,000 Required: a) For each company, compute the following ratios: i) Return on Assets ii) Profit margin ii) Asset Twmover Continued... b) Based on your calculation in a) above, interpret on the relative effectiveness of the two companies in using their assets to generate sales. (17 marks) Part B Nura Guzel Enterprise uses the periodic inventory system to account for inventories. Information related to Nura Guzel Enterprise's inventory at 31 Jamuary is given below: Jamiary i Beginning inventory 1 400 units @ RM12.00 = 4.800 8 Purchase 800 units RM12.40 = 9.920 16 Purchase 600 units @ RM12.80 = 7.680 24 Purchase 200 units RM13.20 = 2.640 Total imits and cost 2.000 units RM25.040 Required: Compute the value of ending inventory using FIFO, LIFO and weighted average method. if 600 umits remain on hand at 31 January (8 marks)