StylesEditingQUESTION TWOVoiceSensitivityEditorRemSelamat Islamic Bank Berhad (SIBB) just announced its financial report for the year ended2016. Table below is a summary of CIBB's financial report.(a)ItemsRM (000)Income StatementOperating RevenueNet IncomeExpensesProfit after tax and zakat3,662,4441,540,333700,343543,443Statement of Financial PositionCurrent AssetCurrent Liability- Demand depositTotal DebtTotal Assets4,332,30010,635,05442,091,09245,620,4423,729,590Total Equity CapitalEvaluate SIBB's performance based on the following financial ratios and explain what eachratio means.i.The capability of management in converting assets into net earnings.i.The effectiveness of management to control cost, expenses and service priceO Focus目(United Kingdom)ENC VoiceSensitivityEditorReusThe efficiency in cost management where the bank is able to make lower/higherprofit with a given expenseiii.iv.Ability of the bank to meet current liability i.e, demand deposit with the currentassetV.The financial strength of a bank to pay its debtor(b) Given a formula for Return on Equity (ROE) as below, evaluate the SIBB's financialefficiency.X Total operating revenue XTotal assetsROE =Net IncomeTotal assetsTotal operating revenueTotal equity capital

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(b) Given a formula for Return on Equity (ROE) as below, evaluate the SIBB's financial efficiency. X Total operating revenue X Total assets ROE = Net Income Total assets Total operating revenue Total equity capital

(b) Given a formula for Return on Equity (ROE) as below, evaluate the SIBB's financial efficiency. X Total operating revenue X Total assets ROE = Net Income Total assets Total operating revenue Total equity capital

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter17: Financial Statement Analysis

Section17.4: Analyzing Financial Statements Using Financial Ratios

Problem 1WT

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