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Sales Revenue Less: Sales Return Sales Discount Net Sales Kedai Emas Utara Statement Of Profit Or Loss For The Year Ended 31 May 2024 Less: Cost of Sales: Opening Inventory as at 1 June 2023 Add: Net Purchases: Purchases Less: Purchases Return Purchases Discount Cost of Goods Available for Sale Less: Closing Inventory as at 31 May 2024 Gross Profit Add: Other Revenue: Rent Revenue Less: Operating Expenses: Salary Expenses RM RM 500,000 (13,000) (25,000) 462,000 162,000 300,000 (20,000) (66,000) 214,000 376,000 (147,000) (229,000) 233,000 36,000 (93,200) Insurance Expenses (24,000) Depreciation Expenses (65,000) Utity Expenses (13,000) Miscellaneous Expenses (17,800) (213,000) Net Profit 56,000 Non-current Assets: Fixtures and Fittings Furniture Motor Van Kedai Emas Utara Statement Of Financial Position As At 31 May 2024 Cost RM Accumulated Carrying Depreciation Amount RM RM 500,000 350,000 (400,000) 100,000 (300,000) 50,000 200.000 (35.000) 165.000 315,000 Current Assets: Cash in Hand 5,000 Accounts Receivable 250,000 Less: Allowance for Doubtful Debts (135,000) 115,000 Inventory as at 31 May 2024 147,000 Prepaid Insurance 3,000 270,000 Total Assets 585,000 Non-current Liabilities: Bank Loan 100,000 Current Liabilities: Accounts Payable 150,000 Unearned Sales Revenue 60,000 Salary Payable 15,000 225,000 Owner's Equity Halim, Capital Add: Net Profit Less: Halim, Drawings 300,000 56,000 (96,000) 260,000 585,000 Total Liabilities and Owner's Equity Additional information: Net sales of the business comprise of RM317,500 cash sales and the remaining are credit sales. Required: A. Compute the following ratio for both businesses: i. Current ratio. ii. Acid test/quick ratio. . Inventory turnover ratio. iv. Average collection period. Gross profit margin.

Sales Revenue Less: Sales Return Sales Discount Net Sales Kedai Emas Utara Statement Of Profit Or Loss For The Year Ended 31 May 2024 Less: Cost of Sales: Opening Inventory as at 1 June 2023 Add: Net Purchases: Purchases Less: Purchases Return Purchases Discount Cost of Goods Available for Sale Less: Closing Inventory as at 31 May 2024 Gross Profit Add: Other Revenue: Rent Revenue Less: Operating Expenses: Salary Expenses RM RM 500,000 (13,000) (25,000) 462,000 162,000 300,000 (20,000) (66,000) 214,000 376,000 (147,000) (229,000) 233,000 36,000 (93,200) Insurance Expenses (24,000) Depreciation Expenses (65,000) Utity Expenses (13,000) Miscellaneous Expenses (17,800) (213,000) Net Profit 56,000 Non-current Assets: Fixtures and Fittings Furniture Motor Van Kedai Emas Utara Statement Of Financial Position As At 31 May 2024 Cost RM Accumulated Carrying Depreciation Amount RM RM 500,000 350,000 (400,000) 100,000 (300,000) 50,000 200.000 (35.000) 165.000 315,000 Current Assets: Cash in Hand 5,000 Accounts Receivable 250,000 Less: Allowance for Doubtful Debts (135,000) 115,000 Inventory as at 31 May 2024 147,000 Prepaid Insurance 3,000 270,000 Total Assets 585,000 Non-current Liabilities: Bank Loan 100,000 Current Liabilities: Accounts Payable 150,000 Unearned Sales Revenue 60,000 Salary Payable 15,000 225,000 Owner's Equity Halim, Capital Add: Net Profit Less: Halim, Drawings 300,000 56,000 (96,000) 260,000 585,000 Total Liabilities and Owner's Equity Additional information: Net sales of the business comprise of RM317,500 cash sales and the remaining are credit sales. Required: A. Compute the following ratio for both businesses: i. Current ratio. ii. Acid test/quick ratio. . Inventory turnover ratio. iv. Average collection period. Gross profit margin.

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter10: Inventory
Section: Chapter Questions
Problem 6PB: Use the last-in, first-out method (LIFO) cost allocation method, with perpetual inventory updating,...
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Sales Revenue Less: Sales Return Sales Discount Net Sales Kedai Emas Utara Statement Of Profit Or Loss For The Year Ended 31 May 2024 Less: Cost of Sales: Opening Inventory as at 1 June 2023 Add: Net Purchases: Purchases Less: Purchases Return Purchases Discount Cost of Goods Available for Sale Less: Closing Inventory as at 31 May 2024 Gross Profit Add: Other Revenue: Rent Revenue Less: Operating Expenses: Salary Expenses RM RM 500,000 (13,000) (25,000) 462,000 162,000 300,000 (20,000) (66,000) 214,000 376,000 (147,000) (229,000) 233,000 36,000 (93,200) Insurance Expenses (24,000) Depreciation Expenses (65,000) Utity Expenses (13,000) Miscellaneous Expenses (17,800) (213,000) Net Profit 56,000 Non-current Assets: Fixtures and Fittings Furniture Motor Van Kedai Emas Utara Statement Of Financial Position As At 31 May 2024 Cost RM Accumulated Carrying Depreciation Amount RM RM 500,000 350,000 (400,000) 100,000 (300,000) 50,000 200.000 (35.000) 165.000 315,000 Current Assets: Cash in Hand 5,000 Accounts Receivable 250,000 Less: Allowance for Doubtful Debts (135,000) 115,000 Inventory as at 31 May 2024 147,000 Prepaid Insurance 3,000 270,000 Total Assets 585,000 Non-current Liabilities: Bank Loan 100,000 Current Liabilities: Accounts Payable 150,000 Unearned Sales Revenue 60,000 Salary Payable 15,000 225,000 Owner's Equity Halim, Capital Add: Net Profit Less: Halim, Drawings 300,000 56,000 (96,000) 260,000 585,000 Total Liabilities and Owner's Equity Additional information: Net sales of the business comprise of RM317,500 cash sales and the remaining are credit sales. Required: A. Compute the following ratio for both businesses: i. Current ratio. ii. Acid test/quick ratio. . Inventory turnover ratio. iv. Average collection period. Gross profit margin.
Transcribed Image Text:Sales Revenue Less: Sales Return Sales Discount Net Sales Kedai Emas Utara Statement Of Profit Or Loss For The Year Ended 31 May 2024 Less: Cost of Sales: Opening Inventory as at 1 June 2023 Add: Net Purchases: Purchases Less: Purchases Return Purchases Discount Cost of Goods Available for Sale Less: Closing Inventory as at 31 May 2024 Gross Profit Add: Other Revenue: Rent Revenue Less: Operating Expenses: Salary Expenses RM RM 500,000 (13,000) (25,000) 462,000 162,000 300,000 (20,000) (66,000) 214,000 376,000 (147,000) (229,000) 233,000 36,000 (93,200) Insurance Expenses (24,000) Depreciation Expenses (65,000) Utity Expenses (13,000) Miscellaneous Expenses (17,800) (213,000) Net Profit 56,000 Non-current Assets: Fixtures and Fittings Furniture Motor Van Kedai Emas Utara Statement Of Financial Position As At 31 May 2024 Cost RM Accumulated Carrying Depreciation Amount RM RM 500,000 350,000 (400,000) 100,000 (300,000) 50,000 200.000 (35.000) 165.000 315,000 Current Assets: Cash in Hand 5,000 Accounts Receivable 250,000 Less: Allowance for Doubtful Debts (135,000) 115,000 Inventory as at 31 May 2024 147,000 Prepaid Insurance 3,000 270,000 Total Assets 585,000 Non-current Liabilities: Bank Loan 100,000 Current Liabilities: Accounts Payable 150,000 Unearned Sales Revenue 60,000 Salary Payable 15,000 225,000 Owner's Equity Halim, Capital Add: Net Profit Less: Halim, Drawings 300,000 56,000 (96,000) 260,000 585,000 Total Liabilities and Owner's Equity Additional information: Net sales of the business comprise of RM317,500 cash sales and the remaining are credit sales. Required: A. Compute the following ratio for both businesses: i. Current ratio. ii. Acid test/quick ratio. . Inventory turnover ratio. iv. Average collection period. Gross profit margin.
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