Reference no: EM133116303

Question

The financial manager Katrina Sdn Bhd, a manufacturing firm, has decided to seek a line of credit from the Alliance Bank. This additional source of funds is needed to support a large portion of the firm's accounts payable during the next three months, which are the firm's peak seasonal sales period. The firm's most recent financial statements were presented to the bank in support of its loan request.

Katrina Sdn Bhd
Income Statement for the Year ended 31 December 2019
	RM	RM
Sales (all credit)		2,400,000
Less : Cost of goods sold		1,840,000
Gross profits		560,00
Less : Operating expenses:
General and administrative	120,000
Depreciation expense	120,000	240,000
Operating profits		320,000
Less : Interest expense		40,000
Before-tax profits		280,000
Less : Taxes		84,000
After-tax profits		196,000

Katrina Sdn Bhd
Balance Sheet as at 31 December 2019
	RM	RM
Cash	56,000
Marketable securities	24,800
Accounts receivable	132,000
Inventories	336,000
Total current assets	548,800
Net fixed assets	1,080,000
Total Assets	1,628,800
Accounts payable		228,000
Notes payable		52,000
Other current payable		20,000
Total current liabilities		300,000
Long -term  debt		600,000
Total [email protected] par		500,000
Retained earnings		228,800
Total liabilities and shareholders' equity		1,628,800

The average industry rations are provided below to facilitate an analysis of the firm's loan request:

1. Current ratio
2. Quick ratio
3. Inventory turnover ratio
4. Average age of Inventory
5. Average collection period
6. Average Payment Period
7. Total assets turnover
8. Debt ratio
9. Times interest earned
10. Gross profit margin
11. Operating profit margin
12. Net Profit Margin
13. Return on assets
14. Return on equity
15. Cash Conversion Cycle

Required:

Compute the above ratios for Katrina Sdn Bhd 2019.