This question paper consists of ONE (1) section only. There are TWO (2) questions in this section. Answer ALL questions. Question 1 (40 Marks) Rose-Jewel sells jewellery through retail stores throughout the country. Over the last two years it has experienced declining profitability and is wondering if this is related to the sector as a whole. It has recently subscribed to an agency that produces average ratios across many businesses. Below are the ratios that have been provided by the agency for Rose-Jewel's business sector based on a year end of 30 September 2019. Return on year-end capital employed (ROCE) Net asset (total assets less current liabilities) turnover Gross profit margin Operating profit margin Current ratio Average inventory turnover 16-8% 1-4 times 35% 12% 1:25:1 3 times Equity and liabilities Equity Equity shares of RM1 each Property revaluation reserve Retained earnings Non-current liabilities 10% loan notes Current liabilities Trade payables 15,000 3,000 8,600 26,600 8,000 5,400 Current tax payables 1,800 7.200 Total equity and liabilities 41,800 Required: a) Prepare the equivalent ratios that have been provided by the agency for Rose-Jewel Trade payables' payment period Debt to equity 64 days 38% (8 marks) b) Assess the financial and operating performance of Rose-Jewel in comparison to its sector The financial statements of Rose-Jewel for the year ended 30 September 2019 are: averages. (12 marks) Income Statement RM'000 Revenue RM'000 56,000 (Total: 20 Marks) Opening inventory 8,300 Purchases 43,900 52,200 Closing Inventory (10,200) (42,000) Gross profit 14,000 Operating costs Finance costs Profit before tax Income tax expense Profit for the year Statement of financial position (9,800) (800) 3,400 (1.000) 2.400 Assets Non-current assets Property and shop fittings Deferred development expenditure Current assets Inventory Bank Total assets RM'000 RM'000 25,600 5,000 30,600 10,200 1,000 11.200 41.800