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QUESTION 1- Analysis of Financial Statement and Cash Flow The balance shect and income statement for the Changlun Company are as folow: Balance Sheet (RM'000) RM Cash Account receivable 500 2,000 1,000 3,500 4,500 8,000 1,100 600 Inventories Current assets Net fixed assets Total assets Account payabk Accrued expenses Shorts-term notes payable Current liabilities Long-term debt Owners' equity Total kabilities and owner's equity 300 2,000 2,000 4,000 8,000 Income Statement (RM'000) RM Net sales (all credir) Cost of good sold Gross profit Operating espenses Operating income Interest expenses Earning before taxes Income taxes (40%) 8,000 (3300) 4,700 (300) 1,700 (367) (1,333) (533) Net income 800 'Incdudes deprciation espenu of RM500 for the yoar Calculate the following ratios: Current ratio Time interest carned Debt Ratio Average collection period Fixed assets turnover Gross profit margin Retun on oquity Inventory turnover Total asset turnover Operating profit margin Operating income retun on investment

QUESTION 1- Analysis of Financial Statement and Cash Flow The balance shect and income statement for the Changlun Company are as folow: Balance Sheet (RM'000) RM Cash Account receivable 500 2,000 1,000 3,500 4,500 8,000 1,100 600 Inventories Current assets Net fixed assets Total assets Account payabk Accrued expenses Shorts-term notes payable Current liabilities Long-term debt Owners' equity Total kabilities and owner's equity 300 2,000 2,000 4,000 8,000 Income Statement (RM'000) RM Net sales (all credir) Cost of good sold Gross profit Operating espenses Operating income Interest expenses Earning before taxes Income taxes (40%) 8,000 (3300) 4,700 (300) 1,700 (367) (1,333) (533) Net income 800 'Incdudes deprciation espenu of RM500 for the yoar Calculate the following ratios: Current ratio Time interest carned Debt Ratio Average collection period Fixed assets turnover Gross profit margin Retun on oquity Inventory turnover Total asset turnover Operating profit margin Operating income retun on investment

Essentials Of Investments
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
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calculate the following ratios

QUESTION 1- Analysis of Financial Statement and Cash Flow The balance sheet and income statement for the Changlun Company are as folow: Balance Sheet (RM'000) RM Cash 500 Account receivable 2,000 1,000 Inventories Current assets Net fixed assets 3,500 4,500 Total assets Account payable Accrued expenses Shorts-term notes payable Current liabilities 8,000 1,100 600 300 Long-term debt Owners' equity Total liabilities and owner's equity 2,000 2,000 4,000 8,000 Income Statement (RM'000) RM Net sales (all credit) Cost of good sold Gross profit Operating espenses Operating income Interest expenses Earning before taxes Income taxes (40%) 8,000 (3,300) 4,700 (3,000) 1,700 (367) (1,333) (533) 800 Net income ' Indludes depraciation expene of RM500 for the year Calculate the following ratios: Current ratio Debt Ratio Time interest earned Inventory turnover Total asset turnover Average collection period Fixed assets turnover Gross profit margin Retun on equity Operating profit margin Operating income retun on investment
Transcribed Image Text:QUESTION 1- Analysis of Financial Statement and Cash Flow The balance sheet and income statement for the Changlun Company are as folow: Balance Sheet (RM'000) RM Cash 500 Account receivable 2,000 1,000 Inventories Current assets Net fixed assets 3,500 4,500 Total assets Account payable Accrued expenses Shorts-term notes payable Current liabilities 8,000 1,100 600 300 Long-term debt Owners' equity Total liabilities and owner's equity 2,000 2,000 4,000 8,000 Income Statement (RM'000) RM Net sales (all credit) Cost of good sold Gross profit Operating espenses Operating income Interest expenses Earning before taxes Income taxes (40%) 8,000 (3,300) 4,700 (3,000) 1,700 (367) (1,333) (533) 800 Net income ' Indludes depraciation expene of RM500 for the year Calculate the following ratios: Current ratio Debt Ratio Time interest earned Inventory turnover Total asset turnover Average collection period Fixed assets turnover Gross profit margin Retun on equity Operating profit margin Operating income retun on investment
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