Tasik Kecil Berhad has recently applied for a loan from the Secondhand Bank to be used...

 

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Tasik Kecil Berhad has recently applied for a loan from the Secondhand Bank to be used to expand the firm's inventory of soil pipe used in construction and agriculture. Tasik Kecil Berhad's financial statements for the recent year are as follows: Cash Account receivables Inventories Jasik Kecil Berhad. Statement of Financial Position As At 31 December 2019 (in RM) Plant and equipment Less: Accumulated depreciation Total assets Current ratio Acid test ratio 25 000 1500 Account payables Accrued expenses 45 000 71500 116 050 38 000 Short-term notes payable Long-term debt Common stock Retained earnings 149 550 Total liabilities and owners' equity Income Statement For The Year Ended 31 December 2019 (in RM) Net sales (all credit) 160 000 106 000 Less: cost of goods sold Gross profit Less: operating expenses 54 000 Interest expense Earnings before taxes Income taxes Net income Inventory turnover Fixed asset turnover Average collection period 37 000 6 100 43 100 10 900 Net profit margin Debt ratio Time interest earned 4 360 6 540 a. Calculate the financial ratios for 2019 corresponding to the industry average ratios provided below: 1.8 times 0.7 times Return on common equity Gross profit margin 2.5 times 2.5 times 37 days 22 000 8 000 39 000 9.5% 38% 3.5% 65% 3.8 times 69000 22 950 310 50 26 550 149 550 Tasik Kecil Berhad has recently applied for a loan from the Secondhand Bank to be used to expand the firm's inventory of soil pipe used in construction and agriculture. Tasik Kecil Berhad's financial statements for the recent year are as follows: Cash Account receivables Inventories Jasik Kecil Berhad. Statement of Financial Position As At 31 December 2019 (in RM) Plant and equipment Less: Accumulated depreciation Total assets Current ratio Acid test ratio 25 000 1500 Account payables Accrued expenses 45 000 71500 116 050 38 000 Short-term notes payable Long-term debt Common stock Retained earnings 149 550 Total liabilities and owners' equity Income Statement For The Year Ended 31 December 2019 (in RM) Net sales (all credit) 160 000 106 000 Less: cost of goods sold Gross profit Less: operating expenses 54 000 Interest expense Earnings before taxes Income taxes Net income Inventory turnover Fixed asset turnover Average collection period 37 000 6 100 43 100 10 900 Net profit margin Debt ratio Time interest earned 4 360 6 540 a. Calculate the financial ratios for 2019 corresponding to the industry average ratios provided below: 1.8 times 0.7 times Return on common equity Gross profit margin 2.5 times 2.5 times 37 days 22 000 8 000 39 000 9.5% 38% 3.5% 65% 3.8 times 69000 22 950 310 50 26 550 149 550

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To calculate the financial ratios for Jasik Kecil Berhad for the year 2019 well use the provided fin... View the full answer