ABFA1173 Principles of AccountingQuestion 3Statements of Financial Position as at 31 December...Year 1RM'000Year 2RM'000The summarised accounts of Hope Sdn Bhd for Year 1 and Year 2 are givenbelow:Statement of Profit or Loss for the years ended 31 December...RM'000RM'000Non-current assets (NBV)Inventories1101402030Year 1Year 2Trade receivables2528RM'000 RM000RM°000 RM'000Bank45563203SalesLess: Cost of goods soldGross profitLess: Expenses:Administration expensesDebenture interest200280155(150)(210)5070Ordinary share capitalRetained profits10010030413846130141(38)4(50)Net profit before taxLess: Tax expenseNet profit after tax1220Trade payablesBank1512(3)9(4)102512168% Debentures50Statement of Changes in Equity (extract) for the years ended 31 December...Year 2RM'000155203Year 1RM'000Inventories as at 1 January Year 1 was RM50,000.Retained earnings as at 1 JanAdd: Profit for the yearLess: AppropriationOrd div of 5 sen per shareRetained earnings as at 31 Dec2630916Required:(5)(5)(a) Calculate the following ratios for Year 1 and Year 2:3041(vii) Quick ratio.b) State the possible reasons for and significance of any changes in the ratiosshown by your calculations.

This question deals with the calculation of quick ratio. Quick ratio is a financial ratio which…

Question 3 Statements of Financial Position as at 31 December. Year 1 Year 2 The summarised accounts of Hope Sdn Bhd for Year 1 and Year 2 are given below: RM 000 RM'000 RM'000 110 RM'000 Non-current assets (NBV) Inventories 140 Statement of Profit or Loss for the years ended 31 December. 20 30 Year 1 Year 2 Trade receivables 25 28 RM 000 RM 00 RM'000 RM000 280 (210) 70 Bank 45 155 63 Sales 200 203 Less: Cost of goods sold Gross profit Less: Expenses: Administration expenses Debenture interest (150) 50 Ordinary share capital Retained profits 100 100 41 30 130 38 46 141 (38) 4 (50) Net profit before tax Less: Tax expense Net profit after tax 12 20 Trade payables Bank 15 12 (3) (4) 16 10 25 12 8% Debentures 50 Statement of Changes in Equity (extract) for the years ended 31 December. 155 203 Year 1 RM 000 Year 2 RM 000 Inventories as at 1 January Year 1 was RM50,000. Retained earnings as at 1 Jan Add: Profit for the year Less: Appropriation Ord div of 5 sen per share 26 30 16 Required: (5) 30 (a) Calculate the following ratios for Year 1 and Year 2: (vii) Quick ratio. (5) Retained earnings as at 31 Dec 41 b) State the possible reasons for and significance of any changes in the ratios shown by your calculations.

Question 3 Statements of Financial Position as at 31 December. Year 1 Year 2 The summarised accounts of Hope Sdn Bhd for Year 1 and Year 2 are given below: RM 000 RM'000 RM'000 110 RM'000 Non-current assets (NBV) Inventories 140 Statement of Profit or Loss for the years ended 31 December. 20 30 Year 1 Year 2 Trade receivables 25 28 RM 000 RM 00 RM'000 RM000 280 (210) 70 Bank 45 155 63 Sales 200 203 Less: Cost of goods sold Gross profit Less: Expenses: Administration expenses Debenture interest (150) 50 Ordinary share capital Retained profits 100 100 41 30 130 38 46 141 (38) 4 (50) Net profit before tax Less: Tax expense Net profit after tax 12 20 Trade payables Bank 15 12 (3) (4) 16 10 25 12 8% Debentures 50 Statement of Changes in Equity (extract) for the years ended 31 December. 155 203 Year 1 RM 000 Year 2 RM 000 Inventories as at 1 January Year 1 was RM50,000. Retained earnings as at 1 Jan Add: Profit for the year Less: Appropriation Ord div of 5 sen per share 26 30 16 Required: (5) 30 (a) Calculate the following ratios for Year 1 and Year 2: (vii) Quick ratio. (5) Retained earnings as at 31 Dec 41 b) State the possible reasons for and significance of any changes in the ratios shown by your calculations.

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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A-6