The following information is taken from Tanaka Bhd for the year ended 31 December 2020. Preference dividend declared and fully paid in 2020: RM100,000 Ordinary dividend declared and fully paid in 2020: RM3,960,000 Preference share marketable price per unit at 31 December 2020: RM4.60 Ordinary share marketable price per unit at 31 December 2020: RM9.00 Required: a. Calculate the following ratio for 2020: Industry average ratio iv. Profit margin 4.0% v. Earnings per share RM0.46 vi. Rate of return on total assets 11.0% Assumption: all sales in credit; finance expense means interest; ordinary share outstanding throughout both years = 10,000,000 shares.
The following information is taken from Tanaka Bhd for the year ended 31 December 2020. Preference dividend declared and fully paid in 2020: RM100,000 Ordinary dividend declared and fully paid in 2020: RM3,960,000 Preference share marketable price per unit at 31 December 2020: RM4.60 Ordinary share marketable price per unit at 31 December 2020: RM9.00 Required: a. Calculate the following ratio for 2020: Industry average ratio iv. Profit margin 4.0% v. Earnings per share RM0.46 vi. Rate of return on total assets 11.0% Assumption: all sales in credit; finance expense means interest; ordinary share outstanding throughout both years = 10,000,000 shares.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The following information is taken from Tanaka Bhd for the year ended 31 December
2020.
Preference dividend declared and fully paid in 2020: RM100,000
Ordinary dividend declared and fully paid in 2020: RM3,960,000
Ordinary share marketable price per unit at 31 December 2020: RM9.00
Required:
a. Calculate the following ratio for 2020: Industry average ratio
iv. Profit margin 4.0%
v. Earnings per share RM0.46
vi.
Assumption: all sales in credit; finance expense means interest; ordinary share outstanding
throughout both years = 10,000,000 shares.
![Tanaka Bhd
Statement of Financial Position as at 31 December
2020
2019
Non-current assets
RM'000
RM'000
Furniture (Net book value)
31,840
29,200
Current assets
Cash at bank
2,448
3,520
Inventory
13,000
13,200
Accounts receivable
7,600
7,000
Quoted shares
600
500
23,648
24,220
Current liabilities
Accounts payable
10,400
10,920
Accruals
300
500
10,700
11,420
12,948
Working capital
Non-current liabilities
12,800
Long term loan
18,400
18,000
Net assets
26,388
24,000
Shareholder's equity
14,400
14.4 million ordinary shares
500,000 9% preference share
Retained profits
14,400
1,000
1,000
10,988
8,600
26,388
24,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7771d846-7ed7-4d59-be0a-6d90cfaaeded%2F3a4a2318-6167-44cd-b5cc-6b1471bca95f%2Flrp2oe_processed.png&w=3840&q=75)
Transcribed Image Text:Tanaka Bhd
Statement of Financial Position as at 31 December
2020
2019
Non-current assets
RM'000
RM'000
Furniture (Net book value)
31,840
29,200
Current assets
Cash at bank
2,448
3,520
Inventory
13,000
13,200
Accounts receivable
7,600
7,000
Quoted shares
600
500
23,648
24,220
Current liabilities
Accounts payable
10,400
10,920
Accruals
300
500
10,700
11,420
12,948
Working capital
Non-current liabilities
12,800
Long term loan
18,400
18,000
Net assets
26,388
24,000
Shareholder's equity
14,400
14.4 million ordinary shares
500,000 9% preference share
Retained profits
14,400
1,000
1,000
10,988
8,600
26,388
24,000
![Tanaka Bhd
Statement of Comprehensive Income for the year ended 31 December
2020
RM'000
Sales
100,000
Less: Cost of sales
(65,000)
35,000
Gross profit
Less: Expenses
Marketing expenses
Administration expenses
(13,000)
(9,200)
(2,880)
Finance expenses
Operating profit before tax
(25,080)
9.920
Taxation
(3,472)
Operating profit after tax
6,448](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7771d846-7ed7-4d59-be0a-6d90cfaaeded%2F3a4a2318-6167-44cd-b5cc-6b1471bca95f%2Fsf6rj6c_processed.png&w=3840&q=75)
Transcribed Image Text:Tanaka Bhd
Statement of Comprehensive Income for the year ended 31 December
2020
RM'000
Sales
100,000
Less: Cost of sales
(65,000)
35,000
Gross profit
Less: Expenses
Marketing expenses
Administration expenses
(13,000)
(9,200)
(2,880)
Finance expenses
Operating profit before tax
(25,080)
9.920
Taxation
(3,472)
Operating profit after tax
6,448
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