Calculate and analyze the financial ratio from Liquidity, Profitability, Activity, Solvency and Market Measures. Income Statement for the year ended 31 DecemberBright BhdRM'000Shine BhdRM’0006,3484,76179479312,6969,903_1,3251,4683171,151404747SalesCost of goods soldSelling and general expensesGross ProfitInterest expenseProfit before taxТахNet Profit after tax159634222412Share price in Bursa MalaysiaRM5.20RM7.21(Assume 365 days in a year.)As you are an investment programme student, Mary has approached you for advice on whichcompany is a better investment. Question 1Mary has recently won some money in a lottery and is considering investing some of her winnings inthe shares of either Bright Bhd or Shine Bhd. Both companies operate in the same sector. You areprovided with the following accounting information for the financial year ending 31 December 2017:Shine BhdBright BhdRM'000Balance Sheet as at 31 December 2017RM'000Fixed assets1,025768Current assetsInventories2,3813,095461,190952Trade debtorsPrepaid expensesCash and bank balances263172.4855,522Total Assets6,5473,253Financed by:Share capital (Ordinary shares RM1)Retained profitsTotal Shareholders' equity1,2008212,0216507851,435Long term loan241389Current liabilitiesTrade creditors1,668713317873Provision for tax397Other accrualsBank overdraft1591,5874,2851,429Total Liabilities and Shareholders' Equity6,5473,253

Financial ratio is an arithmetic expression used to describe the significant relationship between…

Answered: Calculate and analyze the financial…

Business

Accounting

Calculate and analyze the financial ratio from Liquidity, Profitability, Activity, Solvency and Market Measures.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 65.5C

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