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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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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