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    Tutorial Chapter 8

    Uploaded by

    Siti Nor Fatin Ahmad Fodzi
    Financial Statement Analysis

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Tutorial Chapter 8

    Uploaded by

    Siti Nor Fatin Ahmad Fodzi
    13 views2 pages
    Financial Statement Analysis

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    © © All Rights Reserved

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    DOCX, PDF, TXT or read online from Scribd

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    Financial Statement Analysis

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    13 views2 pages

    Tutorial Chapter 8

    Uploaded by

    Siti Nor Fatin Ahmad Fodzi
    Financial Statement Analysis

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    TOPIC 8 (FINANCIAL STATEMENT ANALYSIS)

    QUESTION 1

    Aira Trading
    Statement of Profit or Loss for the year ended 31st December 2020 and 2021
    2020 (RM) 2021 (RM)
    Sales 105,000 163,000
    (-) return inwards (8,000) (10,000)
    97,000 153,000
    (-) Cost of goods sold:
    Opening inventory 20,000 18,000
    Purchases 59,500 67,000
    (-) Closing inventory (18,000) (10,000)
    (61,500) (75,000)
    Gross profit 35,500 78,000

    (-) Expenses: (30,400) (65,000)


    Net profit 5,100 13,000

    Aira Trading
    Statement of Financial Position as at 31st December 2020 and 2021
    2020 (RM) 2021 (RM)
    Non Current asset
    Premises 40,000 40,000
    Fixture and fittings 25,000 35,000
    Motor vehicles 14,200 34,200
    79,200 109,200
    Current assets
    Inventory 18,000 16,000
    Account receivables 16,000 20,000
    Bank 15,000 17,000
    49,000 53,000
    128,200 162,200
    Owner Equity:
    Capital 80,000 80,000
    (+) Net Profit 5,100 13,000
    (-) Drawings (2,100) (3,700)
    83,000 89,300
    Non Current Liabilities:
    Loan from RDH Finance Ltd 35,000 61,400

    Current Liabilites:
    Account payables 8,200 7,500
    Accrued expenses 2,000 4,000
    10,200 11,500
    128,200 162,200
    Based on the financial statements for the year ended on 31st December 2020 and 2021 given,
    you are required to:

    i) Calculate for both years:


    a. Current ratio
    b. Acid-test ratio
    c. Gross profit margin
    d. Net profit margin
    e. Inventory turnover ratio
    f. Average collection period (Assume there are 365 days in a year)
    (30 marks)
    ii) Interpret each of the ratios for both years.
    (14 marks)
    iii) Compare and contrast the liquidity ratios, profitability ratios and efficiency ratios for both
    years.
    (6 marks)

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