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Elegant Sdn Bhd Statement of Financial Position as at 31 December	2019	2018
	RM'000	RM'000
Non-Current Assets
Property, Plant & equipment	230,000	180,000
Total Non-Current Assets	230,000	180,000
Current Assets
Inventories	19,500	15,200
Trade Receivables	14,200	14,700
Cash & Cash equivalents	8,240	12,400
Total Current Assets	41,940	42,300
Total Assets	271,940	222,300
Equity&Liabilities
Equity
Share Capital	80,000	50,000
Share Premium	10,000	5,000
Retained earnings	65,290	63,500
Total Equity	155,290	118,500
Non-Current Liabilities
Long Term Loan	100,000	90,000
Total Non-Current Liabilities	100,000	90,000
Current Liabilities
Trade Payables	15,900	13,300
Current Tax Payables	750	500
Total Current Liabilities	16,650	13,800
Total Equity & Liabilities	271,940	222,300
Other Relevant Information
Sales Revenue	86,400	81,100
Cost of Good Sold	68,990	67,074
Administrative Expenses	2,460	2,146
Distribution Costs	4,750	4,080
Finance Costs	5,300	4,600
Income Tax	710	400
Profit after Tax	4,190	2,800

In your role of planning assistant you are to prepare an analysis of the company's figures over the two-year period using the performance criteria listed in the inter-firm table.

1. Prepare a horizontal analysis of the Statement of Comprehensive Income for 2019 using 2018 as the base year.

2. Compute the following ratios for both years in relation to Elegant Sdn Bhd:

1. Average Collection Period.
2. Profit Margin.
3. Debt to Equity.

3. Prepare a detailed report to the Director of Elegant Sdn Bhd on the company's position and performance in terms of liquidity, profitability and solvency. Use the ratios calculated at (c) above as the basis for your commentary.

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