The financial statements for Syarikat Hijau Berhad (SHB) are provided below: Income Statement for the year...

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The financial statements for Syarikat Hijau Berhad (SHB) are provided below: Income Statement for the year ending 31st December, (in RM'000) 2021 Sales (all credit) Cost of goods sold Operating expenses Interest expense Taxes Net income 2022 10,500 5,000 2,100 400 1,000 2,000 Statement of Financial Position as at 31st December, (in RM'000) 2022 2,400 1,800 2,800 Cash Accounts receivable Inventory Non-current assets Total assets 8,000 15,000 14,500 8,500 2,400 640 1,180 1,780 2021 1,500 3,000 6,250 9,250 20,000 Inventory Non-current assets Total assets i. ii. iii. iv. Accounts payables Short-term notes payables Non-current liabilities 2,800 8,000 15,000 800 1,500 2,700 5,000 0,250 9,250 20,000 Common stocks Retained earnings Total liabilities and equities From the information given, you are required to answer the following questions. a. For both years, compute TWO (2) ratios for each of the following categories: Liquidity Asset Management Debt Management Profitability 5,000 15,000 1,441 1,500 6,000 5,000 12,059 20,000 (2 Marks) (2 Marks) (2 Marks) (2 Marks) b. Based on your computation in part (a), interpret and compare the performance of SHB based of the categories of ratio for the year 2022 and year 2021. (7 Marks) (Total: 15 Marks) The financial statements for Syarikat Hijau Berhad (SHB) are provided below: Income Statement for the year ending 31st December, (in RM'000) 2021 Sales (all credit) Cost of goods sold Operating expenses Interest expense Taxes Net income 2022 10,500 5,000 2,100 400 1,000 2,000 Statement of Financial Position as at 31st December, (in RM'000) 2022 2,400 1,800 2,800 Cash Accounts receivable Inventory Non-current assets Total assets 8,000 15,000 14,500 8,500 2,400 640 1,180 1,780 2021 1,500 3,000 6,250 9,250 20,000 Inventory Non-current assets Total assets i. ii. iii. iv. Accounts payables Short-term notes payables Non-current liabilities 2,800 8,000 15,000 800 1,500 2,700 5,000 0,250 9,250 20,000 Common stocks Retained earnings Total liabilities and equities From the information given, you are required to answer the following questions. a. For both years, compute TWO (2) ratios for each of the following categories: Liquidity Asset Management Debt Management Profitability 5,000 15,000 1,441 1,500 6,000 5,000 12,059 20,000 (2 Marks) (2 Marks) (2 Marks) (2 Marks) b. Based on your computation in part (a), interpret and compare the performance of SHB based of the categories of ratio for the year 2022 and year 2021. (7 Marks) (Total: 15 Marks)

Answer rating: 100% (QA)

a Ratios computation for each category Liquidity i Current Ratio Current Assets Current Liabilities ... View the full answer