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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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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