QUESTION 1

The following information has been extracted from the financial statements of ABS Sdn Bhd for the last 3 years:

Year end 31 December 2006 2007 2008
RM000 RM000 RM000

Sales 300 400 500
Cost of goods sold 200 260 300
Net profit 30 50 80
Non Current Assets - cost 150 200 250
- accumulated depreciation 30 50 65
Inventories 10 18 30
Trade Receivables 21 25 35
Trade Payables 12 19 24
Bank 5 - -
Bank overdraft - 6 18
Capital and reserves 144 168 208


REQUIRED:

(a) Calculate the following ratios for each of the 3 years:

(I) Gross profit to sales (expressed as a %)

(ii) Net profit to sales (expressed as a %)

(iii) Return on capital employed (expressed as a %)

(iv) Current (in the form X:1 where X is the current assets)

(v) Trade receivable collection period (expressed in days)

(vi) Inventory turnover (expressed in number of times)



Note: Calculations should be correct to 1 decimal place

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