You have been hired as an analyst for MBJ & Co and your team is working on an independent assessment of Anak Bumi Sdn. Bhd (ABSB). ABSB is a company that specializes in the plantation. Your assistant has provided you with the following data for ABSB and their industry. Ratio 2019 2020 2021 2020- Industry Average Long-term debt 0.45 0.40 0.35 0.35 Inventory Turnover 62.65 42.42 32.25 53.25 Depreciation/Total Assets 0.25 0.02 0.02 0.02 Days’ sales in receivables 113 98 94 130 Debt to Equity 0.75 0.85 0.90 0.88 Profit Margin 0.08 0.07 0.06 0.08 Total Asset Turnover 0.54 0.65 0.70 0.40 Quick Ratio 1.03 1.03 1.03 1.03 Current Ratio 1.33 1.21 1.15 1.25 Times Interest Earned 0.90 4.38 4.45 4.65 Equity Multiplier 1.75 1.85 1.90 1.88 Required: You are required to prepare interim audit report of ABSB for the year 2020.
You have been hired as an analyst for MBJ & Co and your team is working on an independent assessment of Anak Bumi Sdn. Bhd (ABSB). ABSB is a company that specializes in the plantation. Your assistant has provided you with the following data for ABSB and their industry.
|
Ratio |
2019 |
2020 |
2021 |
2020- Industry Average |
|
Long-term debt |
0.45 |
0.40 |
0.35 |
0.35 |
|
Inventory Turnover |
62.65 |
42.42 |
32.25 |
53.25 |
|
|
0.25 |
0.02 |
0.02 |
0.02 |
|
Days’ sales in receivables |
113 |
98 |
94 |
130 |
|
Debt to Equity |
0.75 |
0.85 |
0.90 |
0.88 |
|
Profit Margin |
0.08 |
0.07 |
0.06 |
0.08 |
|
Total Asset Turnover |
0.54 |
0.65 |
0.70 |
0.40 |
|
Quick Ratio |
1.03 |
1.03 |
1.03 |
1.03 |
|
|
1.33 |
1.21 |
1.15 |
1.25 |
|
Times Interest Earned |
0.90 |
4.38 |
4.45 |
4.65 |
|
Equity Multiplier |
1.75 |
1.85 |
1.90 |
1.88 |
Required:
You are required to prepare interim audit report of ABSB for the year 2020.
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