e following information is taken from Tanaka Bhd for the year ended 31 December 2020. Preference dividend declared and fully paid in 2020: RM100,000 Ordinary dividend declared and fully paid in 2020: RM3,960,000 Preference share marketable price per unit at 31 December 2020: RM4.60 Ordinary share marketable price per unit at 31 December 2020: RM9.00 Industry average ratio i. Current ratio 2.3 : 1 ii. Quick ratio 1.1 : 1 iii. Asset turnover 2.0 iv. Profit margin 4.0% v. Earnings per share RM0.46 vi. Rate of return on total assets 11.0% From the industry average, identify and comment on Tanaka Bhd’s profitability and shortterm liquidity
e following information is taken from Tanaka Bhd for the year ended 31 December 2020. Preference dividend declared and fully paid in 2020: RM100,000 Ordinary dividend declared and fully paid in 2020: RM3,960,000 Preference share marketable price per unit at 31 December 2020: RM4.60 Ordinary share marketable price per unit at 31 December 2020: RM9.00 Industry average ratio i. Current ratio 2.3 : 1 ii. Quick ratio 1.1 : 1 iii. Asset turnover 2.0 iv. Profit margin 4.0% v. Earnings per share RM0.46 vi. Rate of return on total assets 11.0% From the industry average, identify and comment on Tanaka Bhd’s profitability and shortterm liquidity
Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter14: Financial Statement Analysis
Section: Chapter Questions
Problem 14.9BE
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The following information is taken from Tanaka Bhd for the year ended 31 December
2020.
Preference dividend declared and fully paid in 2020: RM100,000
Ordinary dividend declared and fully paid in 2020: RM3,960,000
Ordinary share marketable price per unit at 31 December 2020: RM9.00
Industry average ratio
i.
ii. Quick ratio 1.1 : 1
iii. Asset turnover 2.0
iv. Profit margin 4.0%
v. Earnings per share RM0.46
vi.
From the industry average, identify and comment on Tanaka Bhd’s profitability and shortterm liquidity.
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