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Question 1 (Total: 25 marks)

The income statements and statements of financial position for Kayu Bangku Berhad for 2019 and 2020 are shown below.

KAYU BANGKU BERHAD

INCOME STATEMENT FOR THE YEAR ENDED 31 AUGUST 2019 AND 2020

	2020	2019
	RM	RM
Revenue	2,983,620	2,762,444
Cost of sales	1,828,362	1,715,478
Gross profit	1,155,258	1,046,966
Administrative expenses	446,600	458,290
Selling and distribution costs	146,920	136,662
Operating profit	561,738	452,014
Interest payable	-	3,938
Interest receivable	1,862	-
Profit before taxation	563,600	448,076
Tax	159,500	136,650
Profit after taxation	404,100	311,426

KAYU BANGKU BERHAD

STATEMENT OF FINANCIAL POSITION AS AT 31 AUGUST 2019 AND 2020

	2020		2019
ASSETS	RM	RM	RM	RM
Non-current assets		2,021,400		1,863,092
Current assets
Inventory	140,257		128,677
Trade receivables	367,844		365,900
Cash	157,250		-
		665,351		494,577
		2,686,751		2,357,669
EQUITY AND LIABILITIES
Equity
Share capital		500,000		500,000
Retained earnings		1,861,349		1,457,249
		2,361,349		1,957,249
Non-current liabilities		-		93,300
Current liabilities
Trade payables	165,902		170,470
Tax payable	159,500		136,650
		325,402		307,120
		2,686,751		2,357,669

You are required:

a) to present a horizontal analysis of the income statement and statement of financial position. (5 marks)

b) to write a brief report commenting on the income statement and statement of financial position of the business over the two (2) years. Use computations from part (a) to illustrate. (14 marks)

c) to name two (2) interest groups that will be interested in the accounting information of Kayu Bangku Berhad and discuss the reasons for their interest and the aspects which might be particularly useful to them. (6 marks)

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