QUESTION 1-Analysis of Financial Statement and Cash Flow The balanec sheet and income statement for the Changlun Company are as folow: Balance Sheet (RM000) RM Cash 500 Account receivable 2,000 1,000 3,500 Inventories Current assets Net fixed assets 4,500 Total assets 8,000 Account payabke Accrued expenses Shorts-term notes payable Current liabilities Long-term debt Owners' equity Total kabilities and owner's equity 1,100 600 300 2,000 2,000 4,000 8,000 Income Statement (RM'000) RM Net sales (all credit) Cost of good sold Gross profit Operating expenses Operating income Interest expenses Earning before taxes Income taxes (4076) Net income 8,000 (3,300) 4,700 (3000) 1,700 (367) (1,333) (533) 800 'Indudes depreciation expene of RM500 for the yoar Calculate the folowing ratios: Current ratio Debt Ratio Time interest carned Inventory turnover Average collection period Fixed assets turnover
QUESTION 1-Analysis of Financial Statement and Cash Flow The balanec sheet and income statement for the Changlun Company are as folow: Balance Sheet (RM000) RM Cash 500 Account receivable 2,000 1,000 3,500 Inventories Current assets Net fixed assets 4,500 Total assets 8,000 Account payabke Accrued expenses Shorts-term notes payable Current liabilities Long-term debt Owners' equity Total kabilities and owner's equity 1,100 600 300 2,000 2,000 4,000 8,000 Income Statement (RM'000) RM Net sales (all credit) Cost of good sold Gross profit Operating expenses Operating income Interest expenses Earning before taxes Income taxes (4076) Net income 8,000 (3,300) 4,700 (3000) 1,700 (367) (1,333) (533) 800 'Indudes depreciation expene of RM500 for the yoar Calculate the folowing ratios: Current ratio Debt Ratio Time interest carned Inventory turnover Average collection period Fixed assets turnover
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money
Section: Chapter Questions
Problem 9.9E
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![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2c929ef9-c363-4fd3-9d90-78531f3ef918%2F2e11827d-977b-48bc-b00f-26ffaf6d4438%2Fta9tvr9_processed.jpeg&w=3840&q=75)
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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