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Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December...

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Accounting

Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2018

RM

RM

Sales

(-) Cost of sales:

Opening inventory

(+) Purchases

(-) Closing inventory

Gross Profit

(+) Revenues:

Discount received

Commission received

(-) Expenses:

Salaries and wages

Repair and maintenance

Net Profit

25,000

200,000

(15,000)

10,000

8,300

41,300

100,000

450,000

(210,000)

240,000

18,300

(141,300)

117,000

Statement of Financial Position as at 31 December 2018

RM

RM

Non-current Assets

Building

Motor vehicles

Current Assets

Inventory

Account receivables

Bank

Cash

Financed by:

Owners equity

Capital

(+) Net profit

(-) Drawing

Non-current Liabilities

Long-term loan

Current Liabilities

Account payable

200,000

70,600

15,000

46,500

30,150

10,500

130,000

117,000

(10,650)

270,600

102,150

372,750

236,350

95,000

_41,000

372,750

Required:

  1. Calculate the following ratios:
  1. Current ratio
  2. Quick ratio
  3. Inventory turnover ratio
  4. Average collection period
  5. Gross profit margin
  6. Net profit margin

(24 marks)

  1. Give interpretation for each of the above ratios

(6 marks)

Answer & Explanation Solved by verified expert
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