Required 1. Compare the year-end short-term liquidity position of this company at the end of 2021, 2020 and 2019 by comp

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Required 1 Compare The Year End Short Term Liquidity Position Of This Company At The End Of 2021 2020 And 2019 By Comp 1 (80.92 KiB) Viewed 31 times

Required 1. Compare the year-end short-term liquidity position of this company at the end of 2021, 2020 and 2019 by computing the following: a) Current ratio. b) Acid-test ratio. c) Comment on the ratio results. (12 marks) 2. For the years ended December 31, 2021 and 2020, assume all sales are on credit and then compute the following: a) Days sales in receivable (collection period). b) Accounts receivable turnover. c) Inventory turnover. d) Days sales in inventory. e) Comment on the changes in the ratios from 2020 to 2021. (15 marks) (Total Marks 40)

3. Fantech Bhd, is a manufacturer and distributor of computer equipment. The Balance Sheet at December 31, 2021 shows the following: Cash Accounts receivable, net Inventory Prepaid expenses Plant assets, net Total Asset Accounts payable Long-term notes payable Common stock, RM 10.00 par value Retained earnings Total liabilities and equity Year Sales Cost of goods sold Other operating Year expense Interest expense Income taxes Total costs and expenses Net Income Earnings Per Share The company's income statement for the years ended December 31, 2021and 2020 is as follows: RM 410,225 208,550 2020 2021 RM RM 30,800 35,625 88,500 62,500 111,500 82,500 9,700 9,375 277,500 255,000 518,000 11,100 8,525 128,900 97,500 162,500 129,100 518,000 445,000 2021 RM 672,500 (638,400) 34,100 4,000 229,500 445,000 372,500 2.10 75,250 102,500 162,500 104,750 RM 2019 RM 36,800 49,200 53,000 344,500 133,980 12,300 7,845 49,250 82,500 162,500 78,250 372,500 2020 RM 530,000 (498,625) 31,375 1.93