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1))For the years ended December 31, 2018  of your analysis, assume all sales are on credit and then compute the following: ·       (a) collection period, ·       (b) accounts receivable turnover, ·       (c) inventory turnover,

1))For the years ended December 31, 2018  of your analysis, assume all sales are on credit and then compute the following: ·       (a) collection period, ·       (b) accounts receivable turnover, ·       (c) inventory turnover,

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1))For the years ended December 31, 2018  of your analysis, assume all sales are on credit and then compute the following:

·       (a) collection period,

·       (b) accounts receivable turnover,

·       (c) inventory turnover, and

·       (d) days' sales in inventory.

·       (e) Based on your estimates, comment on the changes in the ratios from 2018  year by drawing conclusion regarding efficiency in managing inventory and in collecting receivables (Note: Comment not more than 10 lines).

2))Provide your recommendations for improving the financial condition of your company. (Note: Comment not more than 10 lines).

Annual Report 2018 |Statements of Financial Position As at 31 December 2018 Group Сompany Note 2018 2017 2018 2017 RM RM RM RM Assets Non-current assets 5,306 5,415 Property, plant and equipment Investment properties 75,679,374 210,060 77,688,993 211,426 11 12 62,286,703 11,272 62,286,703 10,406 Investment in subsidiaries 13 18 72,272 39,406 Deferred tax assets Prepayments for acquisition of property, plant and equipment 3,025,000 78,986,706 77,939,825 62,303,281 62,302,524 Current assets Inventories Trade and other receivables Prepayments Cash and bank balances 25,414,315 35,166,990 576,123 96,320,271 24,857,496 40,535, 186 722.527 99,026,217 14 217,802 6,600 37,947,645 299,483 6,600 39,727,218 15 16 157,477,699 165,141,426 38,172,047 40,033,301 236,464,405 243,081,251 100,475,328 102,335,825 Total assets Equity and liabilities Current liabilities Trade and other payables Contract liabilities Income tax payable Dividend payable 53,096,558 1,525,406 1,453,980 49,318,635 2,513,143 4,449,921 16,000,000 17 4 4,122,629 16,000,000 51,087 16,000,000 60,780 16,000,000 72,281,699 73,219,187 17,576,493 17,514,760 Net current assets 85,196,000 91,922,239 20,595,554 22,518,541 Non-current liability Deferred tax liabilities 18 5,912,213 6,344,397 78,193,912 79,563,584 17,576,493 17,514,760 Total liabilities Equity attributable to owners of the parent Share capital Retained earnings 19 20 80,000,000 78,270,493 80,000,000 83,517,667 80,000,000 2,898,835 80,000,000 4,821,065 Total equity 158,270,493 163,517,667 82,898,835 84,821,065 Total equity and liabilities 236,464,405 243,081,251 100,475,328 102,335,825
Transcribed Image Text:Annual Report 2018 |Statements of Financial Position As at 31 December 2018 Group Сompany Note 2018 2017 2018 2017 RM RM RM RM Assets Non-current assets 5,306 5,415 Property, plant and equipment Investment properties 75,679,374 210,060 77,688,993 211,426 11 12 62,286,703 11,272 62,286,703 10,406 Investment in subsidiaries 13 18 72,272 39,406 Deferred tax assets Prepayments for acquisition of property, plant and equipment 3,025,000 78,986,706 77,939,825 62,303,281 62,302,524 Current assets Inventories Trade and other receivables Prepayments Cash and bank balances 25,414,315 35,166,990 576,123 96,320,271 24,857,496 40,535, 186 722.527 99,026,217 14 217,802 6,600 37,947,645 299,483 6,600 39,727,218 15 16 157,477,699 165,141,426 38,172,047 40,033,301 236,464,405 243,081,251 100,475,328 102,335,825 Total assets Equity and liabilities Current liabilities Trade and other payables Contract liabilities Income tax payable Dividend payable 53,096,558 1,525,406 1,453,980 49,318,635 2,513,143 4,449,921 16,000,000 17 4 4,122,629 16,000,000 51,087 16,000,000 60,780 16,000,000 72,281,699 73,219,187 17,576,493 17,514,760 Net current assets 85,196,000 91,922,239 20,595,554 22,518,541 Non-current liability Deferred tax liabilities 18 5,912,213 6,344,397 78,193,912 79,563,584 17,576,493 17,514,760 Total liabilities Equity attributable to owners of the parent Share capital Retained earnings 19 20 80,000,000 78,270,493 80,000,000 83,517,667 80,000,000 2,898,835 80,000,000 4,821,065 Total equity 158,270,493 163,517,667 82,898,835 84,821,065 Total equity and liabilities 236,464,405 243,081,251 100,475,328 102,335,825
Annual Report 2018 [Statements of Comprehensive Income For the financial year ended 31 December 2018 Group 2017 2018 RM Note RM 307,372,915 (197,610,952) 299,665,032 (186,463,785) Revenue from contracts with customer Cost of sales Gross profit 109,761,963 113,201,247 Other items of income 3,104,021 1,278,294 3,363,884 1,080,149 Interest income Other income Other items of expense Administrative expenses Selling and marketing expenses (19,825,762) (36,539,886) (20,410,273) (37,848,580) 57,778,630 (14,819,252) 59,386,427 (14,939,481) Profit before tax Income tax expense Profit net of tax, representing total comprehensive income for the year 42,959,378 44,446,946 Profit net of tax attributable to: Owners of the parent 42,959,378 44,446,946 Total comprehensive income attributable to: Owners of the parent 42,959,378 44,446,946 Earnings per share attributable to owners of the parent (sen per share): Basic 10 5.37 5.56 Diluted 10 5.37 5.56 45 69
Transcribed Image Text:Annual Report 2018 [Statements of Comprehensive Income For the financial year ended 31 December 2018 Group 2017 2018 RM Note RM 307,372,915 (197,610,952) 299,665,032 (186,463,785) Revenue from contracts with customer Cost of sales Gross profit 109,761,963 113,201,247 Other items of income 3,104,021 1,278,294 3,363,884 1,080,149 Interest income Other income Other items of expense Administrative expenses Selling and marketing expenses (19,825,762) (36,539,886) (20,410,273) (37,848,580) 57,778,630 (14,819,252) 59,386,427 (14,939,481) Profit before tax Income tax expense Profit net of tax, representing total comprehensive income for the year 42,959,378 44,446,946 Profit net of tax attributable to: Owners of the parent 42,959,378 44,446,946 Total comprehensive income attributable to: Owners of the parent 42,959,378 44,446,946 Earnings per share attributable to owners of the parent (sen per share): Basic 10 5.37 5.56 Diluted 10 5.37 5.56 45 69
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