Required: Compute the ratios (according to the listed ratios as above) for 2019 and 2020. Analyse the ratios as the above between these 2 years. b. From (a), analyse the ratios as the above between 2020 and the industry. a. Comment the performance of the fim in terms of liquidity, efficiency, debt and profitability of the firm as a whole. d. Give THREE (3) suggestions on how to improve on the profitability. C.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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udejee
d you may be a victim of software counterfeiting. Avoid interruption and keep your files safe with genuine Office today.
Styles
Industry Averages
Current ratio
Inventory turnover
Debt ratio
Net profit margın
25 times
Day sales outstanding 33 days
5 times
50%
7%
Required
Compute the ratios (according to the listed ratios as above) for 2019 and 2020. Analyse the ratios
as the above between these 2 years.
b.
a.
From (a), analyse the ratios as the above between 2020 and the imdustry.
Comment the performance of the fim in terms of liquidity, efficiency, debt and profitability of the
firm as a whole.
d. Give THREE (3) suggestions on how to improve on the profitability.
C.
Transcribed Image Text:udejee d you may be a victim of software counterfeiting. Avoid interruption and keep your files safe with genuine Office today. Styles Industry Averages Current ratio Inventory turnover Debt ratio Net profit margın 25 times Day sales outstanding 33 days 5 times 50% 7% Required Compute the ratios (according to the listed ratios as above) for 2019 and 2020. Analyse the ratios as the above between these 2 years. b. a. From (a), analyse the ratios as the above between 2020 and the imdustry. Comment the performance of the fim in terms of liquidity, efficiency, debt and profitability of the firm as a whole. d. Give THREE (3) suggestions on how to improve on the profitability. C.
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Question 2
You are being appointed as the financial manager of Energy-X Bhd Your first task is to assess the efficiency and
the leverage situation of the firm and how it affects the profitability of the firm. The financial records of the past
two years had been compiled for the analysis as given below:
Energy-X
Balance Sheet (RM millions) as at December 31, 2019 and 2020
2019
2020
Assets
Cash
Accounts receivable
Inventory
Net fixed assets
Total Assets
11
139
291
625
107
198
550
864
1066
Liabilities & Equities
Accounts payable
Long-term debt
Common equity
Total liabilities and equity
88
353
423
1066
101
488
477
864
Energy-X
Income Statement (RM million) as at December 31, 2019 and 2020
2019
2020
Sales
COGS
1100
792
308
1250
875
Gross profit
Operating expenses
Operating profit
Interest expense
Тахes
Net profit
375
176
132
52
32
36
48
_ 54
English (Malaysia)
器”
Transcribed Image Text:Font Spac. Heading 1 Heading 2 Title Subtit Paragraph - isn't genuine, and you may be a victim of software counterfeitīng. Avoid interruption and keep your files safe with genuine Office today. Styles Get genuine Office Question 2 You are being appointed as the financial manager of Energy-X Bhd Your first task is to assess the efficiency and the leverage situation of the firm and how it affects the profitability of the firm. The financial records of the past two years had been compiled for the analysis as given below: Energy-X Balance Sheet (RM millions) as at December 31, 2019 and 2020 2019 2020 Assets Cash Accounts receivable Inventory Net fixed assets Total Assets 11 139 291 625 107 198 550 864 1066 Liabilities & Equities Accounts payable Long-term debt Common equity Total liabilities and equity 88 353 423 1066 101 488 477 864 Energy-X Income Statement (RM million) as at December 31, 2019 and 2020 2019 2020 Sales COGS 1100 792 308 1250 875 Gross profit Operating expenses Operating profit Interest expense Тахes Net profit 375 176 132 52 32 36 48 _ 54 English (Malaysia) 器”
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