Principle of Finance | Calculation must show a formula Question 1 You are given the...
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Principle of Finance | Calculation must show a formula
Question 1
You are given the following information
| Lola Creative Design Sdn Bhd selected financial data 31 st December 2021 | |
|
| (in RM'OOO) |
| Total assets | 7,157 |
| Total equities | 3,248 |
| Inventory | 5,234 |
| Operating income | 723 |
| Interest expenses | 502 |
| Sales | 5,000 |
| Net fixed assets | 1 ,000 |
From the above information you are required to:
- compute: Total Debt Ratio Times Interest Earned Ratio Fixed Assets Turnover Ratio Inventory Turnover Ratio (8 Marks)
Total Debt Ratio
Times Interest Earned Ratio
Fixed Assets Turnover Ratio
Inventory Turnover Ratio
b. based on your calculation in part (a), analyse Lola Creative Design Sdn Bhd performance to the following industry average ratios:
Total Debt Ratio 30%
Times Interest Earned Ratio 5x
Fixed Assets Turnover Ratio 6x
Inventory Turnover Ratio
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