Question

CASE 4 Statement of profit or loss for the year ended June 2018 Sales Cost of sales Gross profit Selling and distribution expenses Administrative expenses Finance expenses RM'000 100,000 64,000 36,000 1,000 1,000 500 2,500 31,000 Taxes Net profit after tax Statement of profit and loss for the year ended December 2018 RM'000 32,000 Non-current assets Property, Plant and Equipment Current assets Cash Account receivables Inventory Total current assets Total assets 20,100 13,900 30,200 64,200 96,200 9,000 Non-current liabilities 8% Loan from Big Bank Current liabilities Accounts payable Shareholders' equity Total liabilities and shareholders' equity 28,000 59,200 96,200

Answer 1

As per rules I am answering the first 4 subparts of the question

1: Current ratio = Current assets/ current liabilities

= 64200/28000

= 2.29

2: Quick ratio=(cash + securities+ accounts receivable)/ current liabilities

= (20100+13900)/28000

=1.21

3: Inventory turnover= Cost of goods sold/ Inventory

= 64000/30200

= 2.12

4: Days sales outstanding = Receivables*365/Sales

= 13900*365/100000

=50.74 days