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
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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calculate the following ratios
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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