Assignment UiTM PLK student financial accounting

ASSIGNMENT FINANCIAL ACCOUNTING

DUE DATE : 13 SEPT 2011

FINANCIAL STATEMENT RATIO (ANALYSIS AND INTERPRE TATION)

The following are summarize of the Income statement and Balance Sheet for year ended 31 December 2010 for Mr. Hakim, a retailer.

Income statement for year ended 31 December 2010.

			RM		RM
Sales					130,000
Less : Cost of sales
	Opening stock		25,000
	Add: Purchases		80,000
			105,000
	Less : Closing stock		25,000
	Gross profit				80,000
					50,000
Less : Expenses					30,000
Net Profit					20,000

Balance Sheet as at 31 December 2010.

			RM		RM
Fixed Assets					10,000
Current Assets
	stock		25,000
	trade debtors		30,000
	balance at bank		15,000
Less : Current Liability			-14,000		56,000
					66,000
Finance by :
Capital					46,000
Add : Net Profit					20,000
					66,000

Required:

Calculate the following ratio. Explain the result.

a) Gross profit ratio

b) Net Profit ratio

c) Stock turnover ratio

d) Current ratio

e) Acid test ratio