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Answer ALL questions.

By March 4, 2022No Comments

Answer ALL questions.ofQuestion 1(20 marks)(a)Calculate and report the following balance sheet for the Roda-roda Companyusing the following informationDebt to assets60 percentQuick ratio1.1Asset turnover5xFixed asset turnover12.037xCurrent ratio2Average collection period16.837daysCashCurrent LiabilitiesAccount ReceivablesBonds PayableInventoryTotal LiabiltiesTotal Current AssetsTotal EquityPlant and EquipmentTotal Liabilities EquityTotal AssetsRM325000Assume all sales are on credit,and data are based upon a 360-day year.[15 marks](b)Adudu’s Fishing Products is analyzing the performance of its cash management.On average,the firm holds inventory for 65 days.pays its suppliers in 35 days.and collects its receivables in 15 days.The firm has a current annual outlay ofRM1.960.000 on operating cycle investments.Adudu currently pays 10 percentfor its financing.(Assume a 360-day year.)(1)Calculate the firm’s cash conversion cyde(1.5 marks](Calculate the firm’s operating cyde.(1.5 marks](间)Calculate and analyze the daily expenditure and the firm’s annual savingsif the operating cyde is reduced by 15 days2 marks]



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