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Calculate and analyze the financial ratio from Liquidity, Profitability, Activity, Solvency and Market Measures.

Calculate and analyze the financial ratio from Liquidity, Profitability, Activity, Solvency and Market Measures.

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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Calculate and analyze the financial ratio from Liquidity, Profitability, Activity, Solvency and Market Measures.

Income Statement for the year ended 31 December Bright Bhd RM'000 Shine Bhd RM’000 6,348 4,761 794 793 12,696 9,903 _1,325 1,468 317 1,151 404 747 Sales Cost of goods sold Selling and general expenses Gross Profit Interest expense Profit before tax Тах Net Profit after tax 159 634 222 412 Share price in Bursa Malaysia RM5.20 RM7.21 (Assume 365 days in a year.) As you are an investment programme student, Mary has approached you for advice on which company is a better investment.
Transcribed Image Text:Income Statement for the year ended 31 December Bright Bhd RM'000 Shine Bhd RM’000 6,348 4,761 794 793 12,696 9,903 _1,325 1,468 317 1,151 404 747 Sales Cost of goods sold Selling and general expenses Gross Profit Interest expense Profit before tax Тах Net Profit after tax 159 634 222 412 Share price in Bursa Malaysia RM5.20 RM7.21 (Assume 365 days in a year.) As you are an investment programme student, Mary has approached you for advice on which company is a better investment.
Question 1 Mary has recently won some money in a lottery and is considering investing some of her winnings in the shares of either Bright Bhd or Shine Bhd. Both companies operate in the same sector. You are provided with the following accounting information for the financial year ending 31 December 2017: Shine Bhd Bright Bhd RM'000 Balance Sheet as at 31 December 2017 RM'000 Fixed assets 1,025 768 Current assets Inventories 2,381 3,095 46 1,190 952 Trade debtors Prepaid expenses Cash and bank balances 26 317 2.485 5,522 Total Assets 6,547 3,253 Financed by: Share capital (Ordinary shares RM1) Retained profits Total Shareholders' equity 1,200 821 2,021 650 785 1,435 Long term loan 241 389 Current liabilities Trade creditors 1,668 713 317 873 Provision for tax 397 Other accruals Bank overdraft 159 1,587 4,285 1,429 Total Liabilities and Shareholders' Equity 6,547 3,253
Transcribed Image Text:Question 1 Mary has recently won some money in a lottery and is considering investing some of her winnings in the shares of either Bright Bhd or Shine Bhd. Both companies operate in the same sector. You are provided with the following accounting information for the financial year ending 31 December 2017: Shine Bhd Bright Bhd RM'000 Balance Sheet as at 31 December 2017 RM'000 Fixed assets 1,025 768 Current assets Inventories 2,381 3,095 46 1,190 952 Trade debtors Prepaid expenses Cash and bank balances 26 317 2.485 5,522 Total Assets 6,547 3,253 Financed by: Share capital (Ordinary shares RM1) Retained profits Total Shareholders' equity 1,200 821 2,021 650 785 1,435 Long term loan 241 389 Current liabilities Trade creditors 1,668 713 317 873 Provision for tax 397 Other accruals Bank overdraft 159 1,587 4,285 1,429 Total Liabilities and Shareholders' Equity 6,547 3,253
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