Summary financial information for VKC Sdn Bhd is given below, covering the last two years. INCOME STATEMENT (EXTRACT) Current year RM '000 Revenue 74,521 Cost of sales 28,256 Salaries and wages 20.027 Other costs 11, 489 Profit before interest and tax 14,749 Interest 1,553 Tax 4, 347 Profit after interest and tax 8,849 Dividend payable 4, 800 STATEMENT OF FINANCIAL POSITION (EXTRACT) Current year RM '000 Shareholders' funds 39,900 Long term debt 14,000 Other information Number of shares in issue ('000) 14,000 P/E ratio (average for the year) VKC Sdn Bhd 14.0 Industry 15.2 INCOME STATEMENT (EXTRACT ) Previous year RM '000 Revenue 68,000 Cost of sales 25, 772 Salaries and wages 19, 562 Other costs 9, 160 Profit before interest and tax 3, 506 Interest 1,863 Tax 3,726 Profit after interest and tax 7,917 Dividend payable 3.100 STATEMENT OF FINANCIAL POSITION ( EXTRACT) Previous year RM '000 Shareholders' funds 35,087 Long term debt 17, 500 Other information 0 Number of shares in issue 14,000 P/E ratio (average for the year) VKC Sdn Bhd 13.15. Industry 15.0 a. Evaluate using profitability, debt, and shareholders' investment ratios, discuss the performance of ABC Co over the last two years. Level: III (12 marks) b. Explain why accounting profits may not be the best measure of a company's achievements. Level: V (
Summary financial information for VKC Sdn Bhd is given below, covering the last two years. INCOME STATEMENT (EXTRACT) Current year RM '000 Revenue 74,521 Cost of sales 28,256 Salaries and wages 20.027 Other costs 11, 489 Profit before interest and tax 14,749 Interest 1,553 Tax 4, 347 Profit after interest and tax 8,849 Dividend payable 4, 800 STATEMENT OF FINANCIAL POSITION (EXTRACT) Current year RM '000 Shareholders' funds 39,900 Long term debt 14,000 Other information Number of shares in issue ('000) 14,000 P/E ratio (average for the year) VKC Sdn Bhd 14.0 Industry 15.2 INCOME STATEMENT (EXTRACT ) Previous year RM '000 Revenue 68,000 Cost of sales 25, 772 Salaries and wages 19, 562 Other costs 9, 160 Profit before interest and tax 3, 506 Interest 1,863 Tax 3,726 Profit after interest and tax 7,917 Dividend payable 3.100 STATEMENT OF FINANCIAL POSITION ( EXTRACT) Previous year RM '000 Shareholders' funds 35,087 Long term debt 17, 500 Other information 0 Number of shares in issue 14,000 P/E ratio (average for the year) VKC Sdn Bhd 13.15. Industry 15.0 a. Evaluate using profitability, debt, and shareholders' investment ratios, discuss the performance of ABC Co over the last two years. Level: III (12 marks) b. Explain why accounting profits may not be the best measure of a company's achievements. Level: V (
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Summary financial information for VKC Sdn Bhd is given
below, covering the last two years. INCOME
STATEMENT (EXTRACT) Current year RM '000 Revenue
74,521 Cost of sales 28,256 Salaries and wages 20.027
Other costs 11, 489 Profit before interest and tax 14,749
Interest 1,553 Tax 4, 347 Profit after interest and tax
8,849 Dividend payable 4, 800 STATEMENT OF
FINANCIAL POSITION (EXTRACT) Current year RM '000
Shareholders' funds 39,900 Long term debt 14,000
Other information Number of shares in issue
('000) 14,000 P/E ratio (average for the year) VKC Sdn
Bhd 14.0 Industry 15.2 INCOME STATEMENT (EXTRACT
) Previous year RM '000 Revenue 68,000 Cost of sales
25, 772 Salaries and wages 19, 562 Other costs 9, 160
Profit before interest and tax 3, 506 Interest 1,863 Tax
3,726 Profit after interest and tax 7,917 Dividend
payable 3.100 STATEMENT OF FINANCIAL POSITION (
EXTRACT) Previous year RM '000 Shareholders' funds
35,087 Long term debt 17, 500 Other information 0
Number of shares in issue 14,000 P/E ratio (average for
the year) VKC Sdn Bhd 13.15. Industry 15.0 a. Evaluate
using profitability, debt, and shareholders' investment
ratios, discuss the performance of ABC Co over the last
two years. Level: III (12 marks) b. Explain why
accounting profits may not be the best measure of a
company's achievements. Level: V (
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education