Question 6Please assist on sub part d, e, f Required:Analyse Rara's financial statement. Include the following ratios for 2020 and discuss your findings (2019values are provided for comparison):a. Current ratio (year 2019 - 0.92:1)b. Inventory turnover (year 2019 – 7.2 times)c. Debt to assets ratio (year 2019 - 82%)d. Return on assets (year 2019 - 10.8%)e. Profit margin (year 2019 – 10.0%)f. Return on common stockholders' equity (year 2019 – 56%) Refer to the following financial statements of Rara Sdn. Bhd. for 2020 and 2019:Rara Sdn. BhdBalance Sheets31st December (in millions)20202019AssetsCurrent assetsCashRM460RM444Acount receivable (net)1,1881,190Inventories1,1321,056Other current assets247225Total current assets3,0272,915Property (net)Other assets3,2813,1285,5935,804Total assetsRM11,901RM11,847Liabilities and Stockholders' EquityCurrent liabilitiesRM3,313RM3,184Long-term liabilitiesStockholders' equity – commonTotal liabilities and stockholders' equity6,8266,5091,762RM11,9012,154RM11,847Rara Sdn. BhdIncome StatementsFor the year ended 31st December (in millions)2020RM13,1987,7502019Net salesRM12,397Cost of goods soldGross profitSelling and administrative expensesIncome from operations7,1085,2895,4483,2993,4721,9761,990Interest expense233248Other (income) expense, net11Income before income taxes1,7321,742Income tax expense503502Net incomeRM1,229RM1,240

Ratio Analysis: It is a quantitative method to understand a company's liquidity, operational…

Refer to the following financial statements of Rara Sdn. Bhd. for 2020 and 2019: Rara Sdn. Bhd Balance Sheets 31st December (in millions) 2020 2019 Assets Current assets Cash RM460 RM444 Acount receivable (net) 1,190 1,188 1,132 Inventories 1,056 Other current assets 247 225 2,915 Total current assets 3,027 3,281 5,593 RM11,901 Property (net) Other assets 3,128 5,804 RM11,847 Total assets Liabilities and Stockholders' Equity Current liabilities RM3,313 6,826 1,762 RM11,901 RM3,184 Long-term liabilities Stockholders' equity – common Total liabilities and stockholders' equity 6,509 2,154 RM11,847 Rara Sdn. Bhd Income Statements For the year ended 31st December (in millions) 2020 RM13,198 2019 Net sales Cost of goods sold Gross profit Selling and administrative expenses Income from operations Interest expense RM12,397 7,750 5,448 3,472 1,976 7,108 5,289 3,299 1,990 233 248 Other (income) expense, net Income before income taxes 11 1,732 1,742 Income tax expense 503 502 Net income RM1,229 RM1,240

Refer to the following financial statements of Rara Sdn. Bhd. for 2020 and 2019: Rara Sdn. Bhd Balance Sheets 31st December (in millions) 2020 2019 Assets Current assets Cash RM460 RM444 Acount receivable (net) 1,190 1,188 1,132 Inventories 1,056 Other current assets 247 225 2,915 Total current assets 3,027 3,281 5,593 RM11,901 Property (net) Other assets 3,128 5,804 RM11,847 Total assets Liabilities and Stockholders' Equity Current liabilities RM3,313 6,826 1,762 RM11,901 RM3,184 Long-term liabilities Stockholders' equity – common Total liabilities and stockholders' equity 6,509 2,154 RM11,847 Rara Sdn. Bhd Income Statements For the year ended 31st December (in millions) 2020 RM13,198 2019 Net sales Cost of goods sold Gross profit Selling and administrative expenses Income from operations Interest expense RM12,397 7,750 5,448 3,472 1,976 7,108 5,289 3,299 1,990 233 248 Other (income) expense, net Income before income taxes 11 1,732 1,742 Income tax expense 503 502 Net income RM1,229 RM1,240

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 8EA: Using the following select financial statement information from Black Water Industries, compute the...

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