Answer Happy

QUESTION 3 Regain Berhad manufactures solar panel for local market. As a financial manager of Regain Berhad. you are required to perform ratio analysis based on the financial information for the year ended 31 December 2020 provided below. Particulars Sales (all credit) Cost of Sales Operating expenses: Interest expense Tax expense Land, Building and Equipment (NBV) Cash Marketable securities Account receivables Inventories Account payable Trade payables Long term Loan Ordinary Shares Retained earnings RM 2,800,000 500,000 1,808,000 70,000 106,000 3,819,000 300,000 100,000 879,000 87,000 500,000 600,000 700.000 600,000 2,785,000 Focus
Inventory turnover Average collection period Debt to equity ratio Net profit margin Total assets turnover Quick ratio Current ratio Gross profit margin 31 December 2019 4.3 times 130 days 88% 7.5% 0.4 times 1.19 times 1.22 times 15% Use 360 days per year. (a) Using the financial information given above, construct Statement of Profit or Loss for the year ended 31 December 2020 and Statement of Financial Position as at 31 December 2020. (8 marks) (b) Calculate the above ratios for Regain Berhad for the year ended 31 December 2020. (8 marks) (c) Discusses the limitation of financial ratios analysis. (3 marks)