Please discuss. Thanks Rara Sdn. BhdBalance Sheets31st December (in millions)20202019AssetsCurrent assetsCashRM460RM444Acount receivable (net)1,1881,190Inventories1,1322471,056225Other current assets3,0273,281Total current assets2,9153,128Property (net)Other assets5.5935,804Total assetsRM11.901RM11,847Liabilities and Stockholders' EquityCurrent liabilitiesRM3,3136,826RM3,1846,509Long-term liabilitiesStockholders' equity - common1.762RM11,9012.154RM11,847Total liabilities and stockholders' equityRara Sdn. BhdIncome StatementsFor the year ended 31st December (in millions)2020RM13,1982019Net salesRM12,397Cost of goods soldGross profitSelling and administrative expensesIncome from operations7.7505,4487,1085,2893.4723.2991,9901,976Interest expense233248Other (income) expense, net111,732Income before income taxes1,742Income tax expense503502Net incomeRM1,229RM1.240 Required:Analyse Rara's financial statement. Include the following ratios for 2020 and discuss your findings (2019values are provided for comparison):a. Return on assets (year 2019 – 10.8%)b. Profit margin (year 2019 – 10.0%)c. Return on common stockholders' equity (year 2019 – 56%)

Name: Please discuss. Thanks Rara Sdn. BhdBalance Sheets31st December (in mi
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Description: Please discuss. Thanks Rara Sdn. BhdBalance Sheets31st December (in millions)20202019AssetsCurrent assetsCashRM460RM444Acount receivable (net)1,1881,190Inventories1,1322471,056225Other current assets3,0273,281Total current assets2,9153,128Property (n

Ratio analysis is one type of analysis in which ratios of the company for the different period are…

Business

Accounting

Rara Sdn. Bhd Balance Sheets 31st December (in millions) 2020 2019 Assets Current assets Cash RM460 RM444 Acount receivable (net) 1,188 1,190 1,132 247 3,027 3,281 1,056 225 Inventories Other current assets Total current assets 2,915 3,128 Property (net) Other assets 5,593 5,804 Total assets RM11.901 RM11.847 Liabilities and Stockholders' Equity RM3,313 6,826 Current liabilities RM3,184 6,509 Long-term liabilities Stockholders' equity - common 1.762 RM11.901 2,154 RM11.847 Total liabilities and stockholders' equity Rara Sdn. Bhd Income Statements For the year ended 31st December (in millions) 2020 2019 Net sales RM13,198 RM12,397 7.750 5,448 Cost of goods sold Gross profit Selling and administrative expenses Income from operations 7.108 5,289 3.472 3,299 1,976 1,990 Interest expense 233 248 Other (income) expense, net 11 1,732 Income before income taxes 1,742 Income tax expense 503 502 Net income RM1,229 RM1,240

Rara Sdn. Bhd Balance Sheets 31st December (in millions) 2020 2019 Assets Current assets Cash RM460 RM444 Acount receivable (net) 1,188 1,190 1,132 247 3,027 3,281 1,056 225 Inventories Other current assets Total current assets 2,915 3,128 Property (net) Other assets 5,593 5,804 Total assets RM11.901 RM11.847 Liabilities and Stockholders' Equity RM3,313 6,826 Current liabilities RM3,184 6,509 Long-term liabilities Stockholders' equity - common 1.762 RM11.901 2,154 RM11.847 Total liabilities and stockholders' equity Rara Sdn. Bhd Income Statements For the year ended 31st December (in millions) 2020 2019 Net sales RM13,198 RM12,397 7.750 5,448 Cost of goods sold Gross profit Selling and administrative expenses Income from operations 7.108 5,289 3.472 3,299 1,976 1,990 Interest expense 233 248 Other (income) expense, net 11 1,732 Income before income taxes 1,742 Income tax expense 503 502 Net income RM1,229 RM1,240

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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