Reference no: EM132952256

Question - Analysis of Financial Statement and Cash Flow - The balance sheet and income statement for the Changlun Company are as follow: Balance Sheet (RM'000) RM Cash 500 Account receivable 2,000 Inventories 1,000 Current assets 3,500 Net fixed assets 4,500 Total assets 8,000 Account payable 1,100 Accrued expenses 600 Shorts-term notes payable 300 Current liabilities 2,000 Long-term debt 2,000 Owners' equity 4,000 Total liabilities and owner's equity 8,000 Income Statement (RM'000) RM Net sales (all credit) 8,000 Cost of good sold (3,300) Gross profit 4,700 Operating expenses1 (3,000) Operating income 1,700 Interest expenses (367) Earning before taxes (1,333) Income taxes (40%) (533) Net income 800 1 Includes depreciation expense of RM500 for the year.

Calculate the following ratios: 1. Current ratio 2. Debt Ratio 3. Time interest earned 4. Average collection period 5. Inventory turnover 6. Fixed assets turnover 7. Total asset turnover 8. Gross profit margin 9. Operating profit margin 10. Retun on equity 11. Operating income return on investment?