COURSE CODE: ACC117/106/100

DECLARATION FORM OF GROUP ASSIGNMENT

Name of group leader and members: Student ID:

MUHAMMAD FARIS HAZIQ BIN MUHAMMAD RADZI 2022878048

NUR DALILA QISTINA BINTI SAIFUL ANUAR 2022645454

MIRZA BATRYSYIA BINTI MIRHARDY 2022854728

NUR IFFAH ABDUL KUDUS 2022607406

Group: MBA1411C

DECLARATION: We declare that the assignment here submitted is original and no part of this
assignment has been copied from other person's work except when due acknowledgement is
made in the text and all members of the group have read and checked all parts of the piece of
work, irrespective of whether they are contributed by individual members or all members as a
group, here submitted are original except for source material explicitly acknowledged.

Signature of group leader: Submission Date:

DISCLAIMER: A lecturer has a right not to mark this assignment if the above declaration has not been signed.
If the above declaration is found to be false, no mark will be rewarded for this assignment.
 ACC117/106/100
GROUP PROJECT 2
(SEMESTER OCT 2022-FEB 2023)

PREPARED BY :

NAME STUDENT ID

MUHAMMAD FARIS HAZIQ BIN MUHAMMAD RADZI 2022878048

NUR DALILA QISTINA BINTI SAIFUL ANUAR 2022645454

MIRZA BATRYSYIA BINTI MIRHARDY 2022854728

NUR IFFAH ABDUL KUDUS 2022607406

GROUP: MBA1411C

PREPARED FOR :
SIR MUHAMMAD MUKHLIS
ABDUL FATAH

DEADLINE OF
SUBMISSION: 29 JANUARY
2023
Additional information

1) Farmasi Tapah 2) Farmasi Tapah

Cash Sales = RM 2880000 x 10% Net purchases = RM 2080000
= RM 288000 Farmasi Seri Iskandar
Farmasi Seri Iskandar Net Purchases = RM 3700000
Cash Sales = RM 5320000 x 10%
= RM 532000

Question A

Compute the following ratios for both businesses :

i) Current ratio = Current Asset

Current Liability
Farmasi Tapah = 654 000
392 000
= 1.67: 1
Farmasi Seri Iskandar = 543 000
248 000
= 2.19 : 1

ii) Quick Ratio = Current Asset – Inventory – Prepayment

Current Liability
Farmasi Tapah = 654 000 – 224 000 – 2000
392 000
= 1.09 : 1
Farmasi Seri Iskandar = 543 000 – 31 600 – 0
248 000
= 0.92 : 1

iii) Inventory Turnover Ratio = Cost of Sales

Average Inventory
Farmasi Tapah = 2 240 000
(224 000 / 2)
= 20 Times
Farmasi Seri Iskandar = 3 664 000
(316 000 /2)
= 24 Times
iv) Account Receivable collection period = Account Receivable x 365
Credit Sale
Farmasi Tapah = 422 000 x 365
(2 880 000 – 288 000)
= 60 Days
Farmasi Seri Iskandar = 316 000 x 365
(5 320 000 – 532 000)
= 25 Days

v) Gross Profit Margin = Gross Profit x 100

Sale
Farmasi Tapah = 640 000 x 100
2 880 000

= 22.22 %

Farmasi Seri Iskandar = 1 656 000 x 100

5 320 000

= 31.13 %

Vi) Net Profit Margin = Net Profit x 100

Sale

Farmasi Tapah = 96 000 x 100

2 880 000

= 3.33 %

Farmasi Seri Iskandar = 364 000 x 100

5 320 000

= 6.84 %
Question B

Based on your above answer in Question A :

i. Interpret each of the accounting ratios for both businesses.

FINANCIAL STATEMENT FARMASI TAPAH FARMASI SERI

ANALYSIS ISKANDAR

Current Ratio For every RM1 of For every RM1 of

Current Liability, the Current Liability, the
business has RM1.67 business has RM2.19
of Current Asset to pay of Current Asset to pay
the Current Liability. the Current Liability.

Quick Ratio For every RM1 of For every RM1 of

Current Liability, the Current Liability, the
business has RM1.09 business has RM0.92
of Current Asset of Current Asset
excluding the excluding the
prepayment and prepayment and
inventory to pay the inventory to pay the
Current Liability. Current Liability.

Inventory Turnover The business replaced The business replaced

Ratio its inventory 20 times WHILE its inventory 24 times
per accounting period. per accounting period.

Account Receivable The business takes The business takes

Collection Period average of 60 days to average of 25 days to
collect debt. collect debt.

Gross Profit Margin For every RM1 sales For every RM1 sales
made by the business, made by the business,
the business generate the business generate
RM22.22 of Gross RM31.13 of Gross
Profit. Profit.

Net Profit Margin For every RM1 sales For every RM1 sales
made by the business, made by the business,
the business generate the business generate
RM3.33 as Net Profit. RM6.84 as Net Profit.