The following are Statement of Financial Position and Statement of ComprehensiveIncome of Lala Electronics Sdn. Bhd.Table 3: Statement of Financial Position and Statement of Comprehensive Income ofLala Electronics Sdn. Bhd.Lala Electronics Sdn. Bhd.Statement of Financial Position as at 31/12/2020Non-Current Asset:InvestmentFixed Assets at costRM270,000RM1,596,000Accumulated DepreciationNet Book Value(857,000)739,000Current Asset:CashAccount ReceivableInventoryPrepaid Expenses178,000678,0001,329,00056,0002,241,0003,250,000Total assetsCurrent Llabilities:Account PayableInterest PayableIncome Taxes PayableOther Accrued LiabilitiesTotal Current Liabilitles148,00036,000448,000191,000823,000Long Term Liablitles:Bank Loan631,0001,454,000Total LiabilitiesEquity:CapitalAppropriate Profit (RetainedEarnings)782,0001,014,0001,796,0003,250,000 Lala Electronics Sdn. Bhd.Statement of Comprehensive Income for the year ended 31/12/2020RM3,992,000(2,680,000)RMSales(-) COGSGross Profit(-) Selling, General and Administrative expensesEBIT1,312,000(912,000)400,000(85,000)315,000(114,000)201,000(-) Interest ExpenseEBT(-) Income TaxesEarnings after Taxes(i) Calculate the cash conversion cycle for Lala Electronics Sdn. Bhd.(ii) Based on the answer in (i) above, justify your answer.

Cash conversion cycle represent the number of days taken by the company to convert its goods into…

Lala Electronics Sdn. Bhd. Statement of Comprehensive Income for the year ended 31/12/2020 RM 3,992,000 (2,680,000) RM Sales (-) COGS Gross Profit (-) Selling, General and Administrative expenses EBIT (-) Interest Expense EBT (-) Income Taxes Earnings after Taxes 1,312,000 (912,000) 400,000 (85,000) 315,000 (114,000) 201,000 1) Calculate the cash conversion cycle for Lala Electronics Sdn. Bhd. (ii) Based on the answer in (i) above, justify your answer.

Lala Electronics Sdn. Bhd. Statement of Comprehensive Income for the year ended 31/12/2020 RM 3,992,000 (2,680,000) RM Sales (-) COGS Gross Profit (-) Selling, General and Administrative expenses EBIT (-) Interest Expense EBT (-) Income Taxes Earnings after Taxes 1,312,000 (912,000) 400,000 (85,000) 315,000 (114,000) 201,000 1) Calculate the cash conversion cycle for Lala Electronics Sdn. Bhd. (ii) Based on the answer in (i) above, justify your answer.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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