ASSIGNMENT 1

DEC 2015

QUESTION 1

Below are the financial statements for SoHo Fitness Berhad for year 2014

SoHo Fitness Berhad

Balance Sheet as at 31st December 2014
Cash and Bank Balance 90,000 Account Payables 76,500
Account Receivables 30,100 Accrued Expenses 64,850
Inventories 75,350 Notes Payable 20,000
Prepaid Expenses 29,000
Long Term Borrowing 200,000
Properties & Equipments 1,300,000 Convertible Bond 350,000
(-) Accumulated Depreciation 90,000
Paid Up Capital 300,000
Common Stocks 500,000
Retained Earnings 103,100
TOTAL ASSETS 1,614,450 TOTAL LIABILITIES & 1,614,450
EQUITIES

SoHo Fitness Berhad

Income Statement for the year ended 31st December 2014
Sales 400,000
- Cost of Goods Sold 280,000
Gross Profit 120,000
- Administrative Expenses 20,000
- Depreciation 20,000
- Interest 10,000
Profit before Tax 70,000
- Tax 10,400
Profit after Tax 59,600

Industry Average Ratio

Current Ratio 1.15 times Debt Ratio 40%
Quick Ratio 0.85 times Return on Equity 8%
Average Collection Period 45 days Times Interest Earned 10 times
Fixed Assets Turnover 0.30 times Net Profit Margin 16%

a) Group and compute the above indicated ratios for SoHo Fitness Berhad
(12 marks)
b) Evaluate the overall performance of the company based on the above
groups ratios calculated.
(8 marks)