You have been hired as an analyst for MBJ & Co and your team is working on an independent assessment of Anak Bumi Sdn. Bhd (ABSB). ABSB is a company that specializes in the plantation. Your assistant has provided you with the following data for ABSB and their industry. Ratio 2019 2020 2021 2020- Industry Average Long-term debt 0.45 0.40 0.35 0.35 Inventory Turnover 62.65 42.42 32.25 53.25 Depreciation/Total Assets 0.25 0.02 0.02 0.02 Days’ sales in receivables 113 98 94 130 Debt to Equity 0.75 0.85 0.90 0.88 Profit Margin 0.08 0.07 0.06 0.08 Total Asset Turnover 0.54 0.65 0.70 0.40 Quick Ratio 1.03 1.03 1.03 1.03 Current Ratio 1.33 1.21 1.15 1.25 Times Interest Earned 0.90 4.38 4.45 4.65 Equity Multiplier 1.75 1.85 1.90 1.88 Required: You are required to prepare interim audit report of ABSB for the year 2020.
You have been hired as an analyst for MBJ & Co and your team is working on an independent assessment of Anak Bumi Sdn. Bhd (ABSB). ABSB is a company that specializes in the plantation. Your assistant has provided you with the following data for ABSB and their industry. Ratio 2019 2020 2021 2020- Industry Average Long-term debt 0.45 0.40 0.35 0.35 Inventory Turnover 62.65 42.42 32.25 53.25 Depreciation/Total Assets 0.25 0.02 0.02 0.02 Days’ sales in receivables 113 98 94 130 Debt to Equity 0.75 0.85 0.90 0.88 Profit Margin 0.08 0.07 0.06 0.08 Total Asset Turnover 0.54 0.65 0.70 0.40 Quick Ratio 1.03 1.03 1.03 1.03 Current Ratio 1.33 1.21 1.15 1.25 Times Interest Earned 0.90 4.38 4.45 4.65 Equity Multiplier 1.75 1.85 1.90 1.88 Required: You are required to prepare interim audit report of ABSB for the year 2020.
You have been hired as an analyst for MBJ & Co and your team is working on an independent assessment of Anak Bumi Sdn. Bhd (ABSB). ABSB is a company that specializes in the plantation. Your assistant has provided you with the following data for ABSB and their industry. Ratio 2019 2020 2021 2020- Industry Average Long-term debt 0.45 0.40 0.35 0.35 Inventory Turnover 62.65 42.42 32.25 53.25 Depreciation/Total Assets 0.25 0.02 0.02 0.02 Days’ sales in receivables 113 98 94 130 Debt to Equity 0.75 0.85 0.90 0.88 Profit Margin 0.08 0.07 0.06 0.08 Total Asset Turnover 0.54 0.65 0.70 0.40 Quick Ratio 1.03 1.03 1.03 1.03 Current Ratio 1.33 1.21 1.15 1.25 Times Interest Earned 0.90 4.38 4.45 4.65 Equity Multiplier 1.75 1.85 1.90 1.88 Required: You are required to prepare interim audit report of ABSB for the year 2020.
You have been hired as an analyst for MBJ & Co and your team is working on an independent assessment of Anak Bumi Sdn. Bhd (ABSB). ABSB is a company that specializes in the plantation. Your assistant has provided you with the following data for ABSB and their industry.
Ratio
2019
2020
2021
2020-
Industry Average
Long-term debt
0.45
0.40
0.35
0.35
Inventory Turnover
62.65
42.42
32.25
53.25
Depreciation/Total Assets
0.25
0.02
0.02
0.02
Days’ sales in receivables
113
98
94
130
Debt to Equity
0.75
0.85
0.90
0.88
Profit Margin
0.08
0.07
0.06
0.08
Total Asset Turnover
0.54
0.65
0.70
0.40
Quick Ratio
1.03
1.03
1.03
1.03
Current Ratio
1.33
1.21
1.15
1.25
Times Interest Earned
0.90
4.38
4.45
4.65
Equity Multiplier
1.75
1.85
1.90
1.88
Required:
You are required to prepare interim audit report of ABSB for the year 2020.
Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
