The CEO of Ichigo Sdn. Bhd. has asked you, an experienced financial analyst to perform a...

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The CEO of Ichigo Sdn. Bhd. has asked you, an experienced financial analyst to perform a detailed financial statement analysis of the company for the year ended 31 December 2019. Below are the financial ratios of Ichigo Sdn. Bhd. for the year ended 2018 and the financial statement for the year 2019. Ichigo Sdn. Bhd. Statement of Financial Position as at December 31, 2019 Non-Current Assets Current assets Cash and Marketable Securities Accounts Receivable Inventories Total Assets Financed by: Ordinary Share Capital Retained Earnings Non-Current Liabilities Current Liabilities Bank Overdraft Trade Creditors Sales Less: Cost of goods solds Gross Profit Less: Expenses Ichigo Sdn. Bhd Statement of Comprehensive Income For the year ended 31 December 2019 Administration Depreciation Interest expenses Profit Before Tax Less: Tax Profit after Tax RM 5,292,500 40,000 700,000 2,500,000 8,532,500 4,000,000 2,067,500 1,250,000 180,000 1,160,000 8,532,500 RM 8,000,000 (6,250,000) 1,750,000 (450,000) (400,000) (150.000) 750,000 (210.000) 540,000 Additional information: (i) Required: a. 80% of total sales is credit sales. Use a 360-day per year to calculate the ratios. b. Calculate the above ratios for Ichigo Sdn. Bhd. for the financial year 2019. (16 marks) Comment the ratios whether 'Good' or "Bad' condition with the comparison to industry average. (7 marks) b. State TWO (2) limitations of ratio analysis. (2 marks) The CEO of Ichigo Sdn. Bhd. has asked you, an experienced financial analyst to perform a detailed financial statement analysis of the company for the year ended 31 December 2019. Below are the financial ratios of Ichigo Sdn. Bhd. for the year ended 2018 and the financial statement for the year 2019. Ichigo Sdn. Bhd. Statement of Financial Position as at December 31, 2019 Non-Current Assets Current assets Cash and Marketable Securities Accounts Receivable Inventories Total Assets Financed by: Ordinary Share Capital Retained Earnings Non-Current Liabilities Current Liabilities Bank Overdraft Trade Creditors Sales Less: Cost of goods solds Gross Profit Less: Expenses Ichigo Sdn. Bhd Statement of Comprehensive Income For the year ended 31 December 2019 Administration Depreciation Interest expenses Profit Before Tax Less: Tax Profit after Tax RM 5,292,500 40,000 700,000 2,500,000 8,532,500 4,000,000 2,067,500 1,250,000 180,000 1,160,000 8,532,500 RM 8,000,000 (6,250,000) 1,750,000 (450,000) (400,000) (150.000) 750,000 (210.000) 540,000 Additional information: (i) Required: a. 80% of total sales is credit sales. Use a 360-day per year to calculate the ratios. b. Calculate the above ratios for Ichigo Sdn. Bhd. for the financial year 2019. (16 marks) Comment the ratios whether 'Good' or "Bad' condition with the comparison to industry average. (7 marks) b. State TWO (2) limitations of ratio analysis. (2 marks)

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