Tutorial 8
Tutorial 8
Tutorial 8
4. Surge Bhd has the following results for the year ended 31st August 2020:
Statement of Profit or Loss for the year ended 31st August 2020
RM’000 RM’000
Revenue 28,000
Cost of sales
Opening inventory 2,300
Purchases 16,200
18,500
Less: Closing inventory 2,800
15,700
Gross profit 12,300
Less: Expenses (6,200)
Net profit 6,100
Less: Taxation (1,000)
Net profit after tax 5,100
Required: Calculate the gross profit margin and net profit margin of Surge Bhd for the
period.
1
ABFA3044 BUSINESS ACCOUNTING
Current assets
Inventories 160 176
Trade receivables 3,072 1,592
Prepayments 96 80
Fixed deposits 472 704
Cash on hand 40 48
3,840 2,600
Total assets 15,120 11,800
Equity
Share capital 12,016 8,480
Retained earnings 960 800
12,976 9,280
Non-current liabilities
Debentures 1,200 1,760
Current liabilities
Trade payables 320 200
Bank overdraft 208 320
Dividend payable 80 40
Tax payable 336 200
944 760
Total equity and liabilities 15,120 11,800
2
ABFA3044 BUSINESS ACCOUNTING
a. Calculate the following ratios for Red Peace Sdn Bhd for years ended 31 October
2020 and 31 October 2021:
2020:
Gross Profit
×100 %
Sales
7,930
¿ ×100 %
18,800
= 42.18%
2021:
7,200
¿ ×100 %
20,480
¿ 35.16%
2020:
1,094
¿ ×100 %
18,800
= 5.82%
2021:
1,408
¿ ×100 %
20,480
¿ 6.88%
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ABFA3044 BUSINESS ACCOUNTING
2020:
1,094 +920
¿ × 100 %
9,280+1,760
= 18.24%
2021:
1,408+ 768
¿ ×100 %
12, 976+1,200
¿ 15.35%
2020:
Sales
Average Total Assets
18,800
¿
11,800
= 1: 1.59
2021:
20,480
¿
15,120
¿ 1: 1.35
v. Current ratio
2020:
4
ABFA3044 BUSINESS ACCOUNTING
Current Assets
Current Liabilities
2,600
¿
760
= 3.42: 1
2021:
3,840
¿
944
= 4.07: 1
5
ABFA3044 BUSINESS ACCOUNTING