Lala Electronics Sdn. Bhd. Statement of Comprehensive Income for the year ended 31/12/2020 RM 3,992,000 (2,680,000) RM Sales (-) COGS Gross Profit (-) Selling, General and Administrative expenses EBIT (-) Interest Expense EBT (-) Income Taxes Earnings after Taxes 1,312,000 (912,000) 400,000 (85,000) 315,000 (114,000) 201,000 1) Calculate the cash conversion cycle for Lala Electronics Sdn. Bhd. (ii) Based on the answer in (i) above, justify your answer.
Lala Electronics Sdn. Bhd. Statement of Comprehensive Income for the year ended 31/12/2020 RM 3,992,000 (2,680,000) RM Sales (-) COGS Gross Profit (-) Selling, General and Administrative expenses EBIT (-) Interest Expense EBT (-) Income Taxes Earnings after Taxes 1,312,000 (912,000) 400,000 (85,000) 315,000 (114,000) 201,000 1) Calculate the cash conversion cycle for Lala Electronics Sdn. Bhd. (ii) Based on the answer in (i) above, justify your answer.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:The following are Statement of Financial Position and Statement of Comprehensive
Income of Lala Electronics Sdn. Bhd.
Table 3: Statement of Financial Position and Statement of Comprehensive Income of
Lala Electronics Sdn. Bhd.
Lala Electronics Sdn. Bhd.
Statement of Financial Position as at 31/12/2020
Non-Current Asset:
Investment
Fixed Assets at cost
RM
270,000
RM
1,596,000
Accumulated Depreciation
Net Book Value
(857,000)
739,000
Current Asset:
Cash
Account Receivable
Inventory
Prepaid Expenses
178,000
678,000
1,329,000
56,000
2,241,000
3,250,000
Total assets
Current Llabilities:
Account Payable
Interest Payable
Income Taxes Payable
Other Accrued Liabilities
Total Current Liabilitles
148,000
36,000
448,000
191,000
823,000
Long Term Liablitles:
Bank Loan
631,000
1,454,000
Total Liabilities
Equity:
Capital
Appropriate Profit (Retained
Earnings)
782,000
1,014,000
1,796,000
3,250,000
Transcribed Image Text:Lala Electronics Sdn. Bhd.
Statement of Comprehensive Income for the year ended 31/12/2020
RM
3,992,000
(2,680,000)
RM
Sales
(-) COGS
Gross Profit
(-) Selling, General and Administrative expenses
EBIT
1,312,000
(912,000)
400,000
(85,000)
315,000
(114,000)
201,000
(-) Interest Expense
EBT
(-) Income Taxes
Earnings after Taxes
(i) Calculate the cash conversion cycle for Lala Electronics Sdn. Bhd.
(ii) Based on the answer in (i) above, justify your answer.
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