nalyse Delima’s financial statement. Include the following ratios for 2020 and discuss your findings (2019 values are provided for comparison): Current ratio (year 2019 – 92:1) Inventory turnover (year 2019 – 7.2 times) Debt to assets ratio (year 2019 – 82%) Return on assets (year 2019 – 10.8%) Profit margin (year 2019 – 10.0%)
nalyse Delima’s financial statement. Include the following ratios for 2020 and discuss your findings (2019 values are provided for comparison): Current ratio (year 2019 – 92:1) Inventory turnover (year 2019 – 7.2 times) Debt to assets ratio (year 2019 – 82%) Return on assets (year 2019 – 10.8%) Profit margin (year 2019 – 10.0%)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Analyse Delima’s financial statement. Include the following ratios for 2020 and discuss your findings (2019 values are provided for comparison):
Current ratio (year 2019 – 92:1)- Inventory turnover (year 2019 – 7.2 times)
- Debt to assets ratio (year 2019 – 82%)
- Return on assets (year 2019 – 10.8%)
- Profit margin (year 2019 – 10.0%)
Transcribed Image Text:Refer to the following financial statements of Delima Sdn. Bhd. for 2019 and 2020:
Delima Sdn Bhd
Income Statements
For the year ended December 31 (in millions)
2020
2019
Net sales
RM13,198
RM12,397
Cost of goods sold
Gross profit
Selling and administrative expenses
Income from operations
7,750
7,108
5,448
5,289
3,472
1,976
3,299
1,990
Interest expense
233
248
Other (income) expense, net
11
Income before income taxes
1,732
1,742
Income tax expense
503
502
Net income
1,229
1,240
Delima Sdn Bhd
Balance Sheets
December 31 (in millions)
2020
2019
Assets
Current assets
Cash
RM460
RM444
Acount receivable (net)
1,188
1,190
Inventories
1,132
1,056
Other current assets
247
225
Total current assets
3,027
2,915
Property (net)
3,281
3,128
Other assets
5,593
5,804
Total assets
RM11,901
RM11,847
Transcribed Image Text:Liabilities and Stockholders' Equity
RM3,313
6,826
Current liabilities
RM3,184
Long-term liabilities
Stockholders' equity – common shares
Total liabilities and stockholders' equity
6,509
1,762
2,154
RM11,901
RM11,847
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