Question:

Refer to below financial statement:

Choco Stationary Bhd Statement of Comprehensive Income for the year ended 31 December 2019

SalesRM 305,830

Cost of goods soldRM 210,935

DepreciationRM 26,850

Earnings before interest and taxesRM 68,045

Interest paidRM 11,930

Taxable incomeRM 56,115

Taxes (35%)RM 19,640

Net incomeRM 36,475

DividendsRM 20,000

Retained earningsRM 16,475

Choco Stationary Bhd Statement of Financial Position as at 31 December 2019

Net plant and equipmentRM 260,525

Cash22,050

Accounts receivableRM13,850

InventoryRM24,650

Total current assetsRM 60,550

Total assetsRM321,075

Ordinary sharesRM 25,000

Retained earningsRM 167,840

Total owners' equityRM 192,840

Long-term debtRM85,000

Accounts payableRM 22,850

Notes payableRM 9,000

OtherRM11,385

Total current liabilities RM43,235

Total liabilities and owners' equityRM 321,075

Calculate the following financial ratios as at 31 December 2019:

A. Profitability ratios

i. Net Profit margin

ii. Return on assets

iii. Return on equity

b.Liquidity ratios

i.Current ratio

ii. Equity multiplier

c. Debt ratios

i. Debt-equity ratio

ii. Quick ratio

iii. Times interest earned

iv. Cash coverage ratio

d. Activity ratios

i. Total asset turnover

ii. Inventory turnover

iii. Receivables turnover