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Question 2 Below are the financial statements for the year ended 31 December 2022 for Zazau Zezz Enterprise Statement of Profit or Loss and Other Comprehensive Income for the year ended 31st December 2022 2022 2021 RM RM 550,000 400,000 Sold-180,000-120,000 Sales Revenue Less: Cost of Goods Gross Profit Add: Other Income Less: Expenses: Operating expenses Administrative costs Profit for the year Non-current Assets Statement of Financial Position as at 31st December 2022 Current Assets Inventories Accounts Receivable Bank Cash Total assets 370,000 270,000 25,000 20,000 Current Liabilities Accounts Payable Accruals -175,000-120,000 -25,000 -8,000 195,000 142,000 2022 2021 RM RM 282,500 155,000 Owner's Equities Capital at beginning of the year 198,000 96,000 Profit for the year 195,000 142,000 Less: Drawings -10,000-30,000 Capital at end of the year 383,000 208,000 years. 60,000 45,000 93,500 30,000 42,000 27,500 20,000 16,000 498,000 273,500 85,000 38,500 5,000 7,000 Short term trade financing loan 25,000 20,000 Total Equities and Liabilities 498,000 273,500 Required: (a) Calculate the following ratios for both financial a. Gross profit margin b. Net profit margin c. Inventory turnover ratio d. Current ratio e. Quick ratio or Acid-test ratio f. Average Collection Period (b) Provide comments on the results of the ratios for both financial years. Note: Show all relevant workings

Question 2 Below are the financial statements for the year ended 31 December 2022 for Zazau Zezz Enterprise Statement of Profit or Loss and Other Comprehensive Income for the year ended 31st December 2022 2022 2021 RM RM 550,000 400,000 Sold-180,000-120,000 Sales Revenue Less: Cost of Goods Gross Profit Add: Other Income Less: Expenses: Operating expenses Administrative costs Profit for the year Non-current Assets Statement of Financial Position as at 31st December 2022 Current Assets Inventories Accounts Receivable Bank Cash Total assets 370,000 270,000 25,000 20,000 Current Liabilities Accounts Payable Accruals -175,000-120,000 -25,000 -8,000 195,000 142,000 2022 2021 RM RM 282,500 155,000 Owner's Equities Capital at beginning of the year 198,000 96,000 Profit for the year 195,000 142,000 Less: Drawings -10,000-30,000 Capital at end of the year 383,000 208,000 years. 60,000 45,000 93,500 30,000 42,000 27,500 20,000 16,000 498,000 273,500 85,000 38,500 5,000 7,000 Short term trade financing loan 25,000 20,000 Total Equities and Liabilities 498,000 273,500 Required: (a) Calculate the following ratios for both financial a. Gross profit margin b. Net profit margin c. Inventory turnover ratio d. Current ratio e. Quick ratio or Acid-test ratio f. Average Collection Period (b) Provide comments on the results of the ratios for both financial years. Note: Show all relevant workings

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 87PSB
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Question 2 Below are the financial statements for the year ended 31 December 2022 for Zazau Zezz Enterprise Statement of Profit or Loss and Other Comprehensive Income for the year ended 31st December 2022 2022 2021 RM RM 550,000 400,000 Sales Revenue Less: Cost of Goods Sold -180,000-120,000 Gross Profit Add: Other Income Less: Expenses: Operating expenses Administrative costs Profit for the year Non-current Assets Current Assets Inventories Accounts Receivable Bank Cash Total assets Statement of Financial Position as at 31st December 2022 Current Liabilities Accounts Payable Accruals 370,000 270,000 25,000 20,000 -175,000-120,000 years. -25,000 -8,000 195,000 142,000 Owner's Equities Capital at beginning of the year 198,000 96,000 Profit for the year 195,000 142,000 Less: Drawings Capital at end of the year 2022 2021 RM RM 282,500 155,000 Question 5 60,000 45,000 93,500 30,000 42,000 27,500 20,000 16,000 498,000 273,500 85,000 38,500 5,000 7,000 Short term trade financing loan 25,000 20,000 Total Equities and Liabilities 498,000 273,500 -10,000-30,000 383,000 208,000 Required: (a) Calculate the following ratios for both financial a. Gross profit margin b. Net profit margin c. Inventory turnover ratio d. Current ratio e. Quick ratio or Acid-test ratio f. Average Collection Period (b) Provide comments on the results of the ratios for both financial years. Note: Show all relevant workings
Transcribed Image Text:Question 2 Below are the financial statements for the year ended 31 December 2022 for Zazau Zezz Enterprise Statement of Profit or Loss and Other Comprehensive Income for the year ended 31st December 2022 2022 2021 RM RM 550,000 400,000 Sales Revenue Less: Cost of Goods Sold -180,000-120,000 Gross Profit Add: Other Income Less: Expenses: Operating expenses Administrative costs Profit for the year Non-current Assets Current Assets Inventories Accounts Receivable Bank Cash Total assets Statement of Financial Position as at 31st December 2022 Current Liabilities Accounts Payable Accruals 370,000 270,000 25,000 20,000 -175,000-120,000 years. -25,000 -8,000 195,000 142,000 Owner's Equities Capital at beginning of the year 198,000 96,000 Profit for the year 195,000 142,000 Less: Drawings Capital at end of the year 2022 2021 RM RM 282,500 155,000 Question 5 60,000 45,000 93,500 30,000 42,000 27,500 20,000 16,000 498,000 273,500 85,000 38,500 5,000 7,000 Short term trade financing loan 25,000 20,000 Total Equities and Liabilities 498,000 273,500 -10,000-30,000 383,000 208,000 Required: (a) Calculate the following ratios for both financial a. Gross profit margin b. Net profit margin c. Inventory turnover ratio d. Current ratio e. Quick ratio or Acid-test ratio f. Average Collection Period (b) Provide comments on the results of the ratios for both financial years. Note: Show all relevant workings
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