Page 33 - DBP5043
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EXAMPLE 1 :

            You are required to make an analysis of Melati Sdn Bhd financial
            position and present your analysis in a report. Financial statements of

            the company are presented below:

            Required:

            1. Compute the ratios for Melati Sdn Bhd for the year ended 2019


            2. Comment on the company’s profitability and debt management for
            2019 as compared to the industry average





                                       Melati Sdn Bhd
               Income statement for the year ended 31 December 2019




                                                                     RM             RM



           Sales( All Credit)                                                 350,000


           Less: Cost Of Goods Sold                                         (250,000)



           Gross Profit                                                       100,000

           Less: Expenses

                   Operating Expenses                            25,000
                   Interest                                       5,000

                   Depreciation                                  15,000       (45,000)


                                                                               55,000

           Taxes                                                              (16,500)

           Net Profit                                                          38,500
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