FACULTY OF BUILT ENVIRONMENT

Assignment Public Listed Companies (Properties Sector)

Topic Group Assignment Task

1 Ecoworld Development Group Berhad

2 Sime Darby Property Bhd

3 SP Setia Bhd

4 IOI Properties Group Berhad

5 ACME Holdings Bhd

6 Ayer Holdings Berhad

7 Paramout Corporation Bhd

8 Damansara Realty Berhad

9 HCK Capital Group Berhad

10 Lagenda Properties Berhad

11 DES1G2 Sub.G2 Malton Berhad

12 YTL Land & Development Bhd

ATPM2203 Principles of Accounting

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 FACULTY OF BUILT ENVIRONMENT

An example of front cover

TUNKU ABDUL RAHMAN UNIVERSITY COLLEGE

FACULTY OF BUILT ENVIRONMENT
DIPLOMA IN REAL ESTATE MANAGEMENT
ACADEMIC YEAR 2020/2021

ATPM2203 PRINCIPLES OF ACCOUNTING

FINANCIAL REPORT
OF
ASSIGNMENT TITLE

Lecturer : Vivien Chong

Date Submitted:

Name of Student Reg No. Group Assignment

Mok Zhao Wen 20WVD06977 DES1G2 Sub.G2

1. 70
/100
Loh Li Yen 20WVD02597 DES1G2 Sub.G2
2. 70 /100
Sharen Liela A/P S.Rajasagren 20WVD01465 DES1G2 Sub.G2
3. 70 /100
Nixon Ngoh Zhen Hou 20WVD01017 DES1G2 Sub.G2
4. 70 /100

ATPM2203 Principles of Accounting

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FACULTY OF BUILT ENVIRONMENT
Diploma in Real Estate Management: Semester 3 / YEAR 2020/2021
Course: ATPM2203 Principles of Accounting

Evaluation Rubric – Interpretation of Financial Statements

Assessment Excellent Good Average Poor Marks

criteria 4 3 2 1 Awarded
Subject knowledge Demostrate full knowledge Comfortable and good grasp of Uncomfortable and fair grasp with Poor grasp of information,
(concepts of (more than required), excellent concepts and understanding of information, concepts and concepts and understanding of
financial grasp of all concepts and financial statements and user understanding of financial financial statements and user
2.5
statements & understanding of financial identity. statements and user identity identiy.
identification of statements and user identity.
users)
Financial Analysis Ratio Analysis calculations are Ratio Analysis calculations are Complete the Ratio Analysis Barely able to complete the Ratio
(Using Ratio done extremely well, presents done properlya and notes calculations and sets up analysis of Analysis calculations or is
Analysis from ratios and financial statements differences on financial financial statements including cimpleted at a low level, including
Financial Reports) analysis by category, number statements, including some moderate descriptions and poor description of ratio analysis.
3
and percentage, including descriptions and reasoning behind reasoning behind the use of
descriptions and reasoning the use of particular ratios. particular ratios.
behind the use of particular
ratios.
Comparison to past Can spot more than 2 trends Can determine at least 2 trends, Able to spot growth and slowing Barely able to spot any trends
performance from the ratio analysis and is and can relate them to financial trends from financial statements. from financial statements.
(Analysing the able to relate them to each statements. 3
Financial Report) other from the financial
statements.
Reasons for Can offer many hypothetical Can offer at least 3 reasons for Can offer 2 major reasons for Offers only most basic reasons.
fluctuations reasons for fluctuations, trace fluctuations, and trace them to fluctuations, and some indication Does not indicate the causes for
(Analysing the them throughout financial basic financial statements. of causes. fluctuations.
Financial Report) statements, and spot strategic 3
successes and failures.

Conclusion & Makes realistic appropriate and Makes realistic and appropriate Makes realistic or approporiate Makes unrealistic or inappropriate
Recommendations insightful recommendations that recommendations and provides at conclusion and recommendation, conclusion and recommendations.
takes all information into least 2 concrete reasons clearly but does not offer or offer less
2.5
account and offers at least 5 supported by the information than 2 concrete reasons
concrete reasons and clearly presented and the theory. supported by the information
supported by the information presented and the theory.
presented and the theory.
TOTAL MARKS (20%) 14 /20

TOTAL MARKS FOR WORKS ON ASSIGNMENT 70 /100

ATTPM2203Principles of Accounting Assignment – Marking Scheme

Page | 1 of 2
 Table Of Contents
1.0 Introduction 2

2.0 Accounting Terms and Definitions 3

3.0 Statement of Profit and Loss 5

3.1 Income Statement (Annual) of Malton Berhad 5

4.0 Statement of Balance Sheet 8

4.1 Balance sheet of Malton Berhad 8
4.2 Notes of Balance Sheet 11
4.3 Ratio Analysis of Balance Sheet 12

5.0 Cash Flow Statement 15

5.1 Cash Flow Statement of Malton Berhad 15
5.2 Notes of Statement of Cash Flow 17
5.3 Ratio Analysis of Statement of Cash Flow 18
5.3.1 Profitability Ratio 18
5.3.2 Liquidity Ratios 19
5.3.3 Efficiency Ratios 19

6.0 Conclusion 20

References 21
1.0 Introduction

The company that we choose for this assignment is Malton Berhad. It is located at 75,
Pavilion, Jalan Raja Chulan, Bukit Bintang, 50200 Kuala Lumpur, Wilayah Kuala
Lumpur. Malton Berhad is a public listed property developer based in Malaysia.

Malton Berhad’s root can be tracked back in 1980 comprising mainly the Khuan
Choo Group, Bukit Rimau Development and Domain Group. Khuan Choo Group started
its construction and property development businesses and launched its maiden
commercial property development, Kuchai Business Centre, under the Khuan Choo
Realty Sdn Bhd.
2.0 Accounting Terms and Definitions

● Income Statement
An income statement is one of the important financial statements for reporting a
company’s financial performance over a selected accounting period, with the
alternative key statement which is balance sheet and statement of cash flows.

● Balance sheet
Balance sheet is a financial statement that reviews an enterprise's assets,
liabilities and shareholders equity at a particular point, and gives a foundation for
computing costs of return and comparing its capital structure.

● Cash Flow Statement

Cash Flow Statement, is a monetary statement that summarizes the quantity of
cash and cash equivalents getting into and leaving a company.

● Statement of Changes in Equity

The statement of changes in equity is a reconciliation in the start and finishing of
balances in a enterprise’ equity all through a reporting statement.

● Going Concern
Going concern is an accounting time period for a company that has the assets
had to maintain operating indefinitely till it presents proof to the contrary.

● Prudence
Prudence of accounting is an entity that no longer overestimates revenues,
assets and profits. Thus, it also no longer underestimated liabilities, losses and
expenses.

● Money Measurement
Money measurement is a business that needs the most effective document of an
accounting transaction, It could be expressed in phrases of cash.
● Historical Cost
The historical cost is a measurement of price utilized in accounting wherein the
price of an asset at the balance sheet is recorded at its authentic value while
received through the company.

● Business Entity
The business entity concept indicates that transactions related with a business
must be recorded apart from those of its proprietor or other businesses.

● Duality concept
The duality concept indicates that every business transaction needs to be
cassetted in two distinct accounts.

● Accounting period
An accounting period is a time that covers some accounting use, either calendar
or fiscal year, or week, month or quarter, etc.

● Consistency
The principle of consistency states that once an accounting principle or method is
adopted, it will continue to be followed in subsequent accounting periods so that
the results reported in each period are comparable.
3.0 Statement of Profit and Loss
3.1 Income Statement (Annual) of Malton Berhad

Figure 2.1.1 : Income Statement (Annual) of Malton Berhad

Based on figure 2.1.1 we are able to find out the profit and loss statement of Malton
Berhad. It has stated below.

[RM]

2020 2019 2018 2017

Total Net Revenue 1,809.0 992.1 802.9 830.7

Cost of Revenue, Total 1,626.2 784.0 653.6 618.8

Gross Profit 182.8 208.1 149.3 212.0

Income

Interest Income (Expenses) (45.7) (56.6) (30.0) (16.4)

Total Income (45.7) (56.6) (30.0) (16.4)

Expenses

Seiling/General/Admin 106.9 111.3 101.6 91.2

Depreciation Amortization - - - -

Research & Development - - - -

Interest Expense (Income) 0.1 - - -

Unusual Expense (Income) - - - -

Other Expenses, Total (21.4) (22.2) (43.4) (10.3)

Total Expenses 85.6 89.1 58.2 80.9

Profit of the year 51.59 62.42 61.04 114.67

3.2 Notes of profit and loss statement.

Based on the analysis above we have found out the profit of the year in 2020-2017
of Malton Berhad. The calculation of profit is (Gross Profit +Total Income -Total
Expenses = Profit for the year) These facts offer statistics approximately the
company's ability to generate earnings through growing sales and lowering costs. Some
are conferred with Profit & Loss declaration as a declaration of earnings and loss, profits
statements, statements of operations, announcement of economic results or profits,
income declaration, and rate declaration. For non-earnings organizations, sales and
costs are normally tracked in an economic record referred to as the announcement of
sports.

3.3 Ratio analysis of profit and loss statement

3.4.1 Profitability Ratio
I. Net profit Margin
Net profit Margin = Net profit
Net Sales
2020 : 51.59 / 1809 =0.029
2019 : 62.42/ 992.1 = 0.063
2018 : 61.04/ 802.9 = 0.076
2017 : 114.67/ 830.7 = 0.138
4.0 Statement of Balance Sheet
4.1 Balance sheet of Malton Berhad

The group
30.6.2020 30.6.2019 1.7.2018
Note RM’000 RM’000 RM’000
(Restated) (Restated)
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 11 38,078 40,189 39,647
Right-of-use assets 12 9,544 - -
Investment properties 13 169,425 174,883 171,159
Land held for
property development 14 670,052 191,269 31,457
Investment in
associated companies 16 - - -
Investment in joint ventures 17 - - -
Other investments 18 129,054 245 245
Deferred tax assets 19 22,762 24,325 21,412
___________________________________________________________________
Total non-current assets 1,038,915 430,911 263,920
___________________________________________________________________
Current assets
Property development costs 20 506,453 1,787,239 1,657,157
Inventories 21 170,179 151,942 125,742
Trade receivables 22 154,331 133,184 193,706
Other receivables
and prepaid expenses 22 47,230 97,208 117,349
Contract assets 23 275,037 306,663 116,080
Amount owing by joint ventures 5,444 - -
Tax recoverable 126 121 189
Short-term funds 25 489 473 1,508
Fixed deposits
with licensed banks 36 33,458 40,005 38,612
Cash and bank balances 26 149,256 81,026 122,757
___________________________________________________________________
Total current assets 1,342,003 2,597,861 2,373,100
___________________________________________________________________
Total assets 2,380,918 3,028,772 2,637,020
___________________________________________________________________­
 The Group
30.6.2020 30.6.2019 1.7.2018
Note RM’000 RM’000 RM’000
(Restated) (Restated)

EQUITY AND LIABILITIES

Capital and reserves
Share capital 27 528,552 528,552 528,552
Reserves 28 396,149 385,984 371,940
___________________________________________________________________
924,701 914,536 900,492
Non-controlling interests 29 19,467 132,343 135,167
___________________________________________________________________
Total equity 944,168 1,046,879 1,035,659
___________________________________________________________________
Non-current liabilities
Other payables 34 5,227 11,105 97,758
Redeemable preference shares 30 17,818 10,408 15,798
Bank borrowings -
non-current portion 3 66,307 124,013 107,569
Hire-purchase payables -
non-current portion 32 743 1,988 2,464
Lease liabilities -
non-current portion 33 6,020 - -
Deferred tax liabilities 19 57,894 58,800 64,276
______________________________________________________________________
Total non-current liabilities 154,009 206,314 287,865
______________________________________________________________________

Current liabilities
Trade payables 34 561,885 575,418 514,804
Other payables
and accrued expenses 34 268,797 588,705 349,664
Contract liabilities 23 4,478 8,863 7,210
Bank borrowing-current portion 31 425,054 578,273 422,617
Hire-purchase payables-
current portion 32 1,245 1,786 2,690
Lease liabilities - current portion 33 3,739 - -
Tax liabilities 17,543 22,534 16,511
______________________________________________________________________
Total current liabilities 1,282,741 1,775,579 1,313,496
______________________________________________________________________
Total liabilities 1,436,750 1,981,893 1,601,361
______________________________________________________________________
Total equity and liabilities 2,380,918 3,028,772 2,637,020
______________________________________________________________________

4.2 Notes of Balance Sheet

A balance sheet enumerates the company's assets, liabilities and shareholders'

equity at a specific time point. It is often considered the second significant financial
statement as it shows the liquidity and theoretical value of the business. (Freshbooks,
n.d) The aim of a balance sheet is to show
the financial status of a business at a specific time point. The statement indicates
assets, liabilities and equity. This information is more valuable when the balance sheets
for some continuous phases are grouped together so that tendency in the distinct line
items can be viewed. (Accounting Tools, 2020)
4.3 Ratio Analysis of Balance Sheet
4.3.1 Liquidity Ratio

I. Current ratio : Total current asset / total current liabilities

2020: 1,342,003 / 1,282741 = 1.05
2019: 2,597,861 / 1,775,579 = 1.46
2018: 2,373,100 / 1,313,496 = 1.81

The equation used to compute the current ratio is to divide current assets by
current liabilities. Malton Berhad's current ratios are 1.05% in 2020, 1.46% in
2019 and 1.81% in 2018. A higher current ratio is always more beneficial than a
lower current ratio because it indicates that the company can pay its current
liabilities more easily.

II. Quick ratio: (Current assets - inventories) / current liabilities

2020: (1,342,003 - 170,179- 5,296) / 1,282,741 = 0.90
2019: (2,597,861 - 151,942- 3,325) / 1,775,579 = 1.38

Malton Berhad's quick ratio is 0.90 in 2020 and 1.38 in 2019. A higher quick ratio
is more beneficial to the company because it indicates that there are more quick
assets than current liabilities. Malton Berhad has a quick ratio of more than 1 in
2019, which means that the quick assets are equal to the current liabilities.

4.3.2 Efficiency Ratio

I. Debt ratio: Total liabilities / total assets

2020: 1,436,750 / 2,380,918 = 0.60
2019: 1,981,893 / 3,028,772 = 0.65
2018: 1,601,361 / 2,637,020 = 0.60

Malton Berhad has a debt ratio of 60% in 2020, 65% in 2019 and 60% in 2018.
With a debt ratio greater than 50%, the majority of the company's assets are
financed through debt.

II. Equity ratio : Total equity / total assets

2020: 944,168 / 2,380,918 = 0.40
2019:1,046,879 / 3,028,772 = 0.35
2018:1,035,659 / 2,637,020 = 0.40
 Malton Berhad has an equity ratio of 40% in 2020, 35% in 2019 and 40% in
2018. Companies with higher equity ratios demonstrate to new investors and
creditors that investors trust the company and are willing to fund their
investments.

III. Debt to equity ratio : total liabilities / total equity

2020: 1,436,750 / 944,168 = 1.52
2019:1,981,893 / 1,046,879 = 1.89
2018: 1,601,361 / 1,035,659 = 1.55

Malton Berhad's debt to equity ratio is 152% in 2020, 189% in 2019 and 155% in
2018. A ratio of 1 indicates that investors and creditors contribute on average to
the assets of the business.
 5.0 Cash Flow Statement
5.1 Cash Flow Statement of Malton Berhad

2020 2019
Note RM'000 RM'000
(Restated)

CASH FLOWS FROM/(USED IN)

OPERATING ACTIVITIVE
Profit for the year 17,660 24,204
Adjustments for:
Income tax expense recognised in profit or 33,924 38,220
loss
Finance costs 45,688 56,633
Depreciation of:
Property, plant and equipment 7,138 6,901
Right-of-use assets 3,116
Write-offs of:
Property development costs 948 17
Property, plant and equipment 6 3
Trade receivables 106 11,237
Other receivables 2,696
Land held for development 3,408
Write down of inventories 7,746 2,033
Dividends income from subsidiary company
Allowance for impairment loss in:
Trade receivables 42 15,423
Other receivables 11,425 3,785
Investment in subsidiary companies
Loss/(Gain) on:
Fair value adjustments of investment 10,409 1,594
properties
Fair value adjustments of investment in (8,122)
redeemable preference shares
Disposal of property, plant and equipment (30) (44)
Provision for foreseeable losses 7,599
Interest income (3,552) (2,497)
Distribution income on short-term funds (16) (49)
Reversal of allowance for impairment loss in (2,075)
trade receivables
Effect of dilution in investment in former (2,926)
subsidiary companies
Amortised cost adjustment on redeemable (5,390)
preference shares
Adjustment for loss on increase in 155
shareholding in a subsidiary company

Operating Profit Before Working Capital 135,190 152,225

Changes
Decrease/(Increase) in:
Property development costs, net of interest 774,995 -360,020
expense of RM610,000 (2019: RM1,770,000)
[Note 20(a)]
Trade receivables [Note (ii)] (19,220) 33,862
Other receivables and prepaid expenses 15,777 16,356
[Note (iii)]
Inventories [Note (ii) & (iii)] 11,027 14,002
Contract assets 31,626 (190,583)
Amount due from joint ventures (2,518)
Amount due from subsidiary companies
(Decrease)/Increase in:
Trade payables (13,533) 60,614
Other payables and accrued expenses [Note (325,786) 165,449
(ii)]
Contract liabilities (4,385) 1,653
Amount due to subsidiary companies

Cash Generated From/(Used In) Operations 603,173 (106,442)

Income tax paid (38,267) (40,623)
Income tax refunded 4 105

Net Cash From/(Used In) Operating Activities 564,910 (146,960)

CASH FLOWS USED IN INVESTING

ACTIVITIVE
Additions to investment properties, net of (4,951) (4,546)
interest expense of RMNil (2019: RM772,000)
[Note 13]
Increase in land held for property (1,865) (1,508)
development, net of interest expense of
RM41,000 (2019: RMNil) [Note 14]
Additions to property, plant and equipment (5,033) (7,023)
[Note (i)]
Withdrawal/(Placement) of:
Fixed deposits pledged to licensed banks 19,612 (1,393)
Restricted cash at bank 6,461 (3,914)
Additions to short-term funds (16) 989
Advances to subsidiary companies
Proceeds from disposal of property, plant and 30 44
equipment
Interest received 3,552 2,497
Distribution income on short-term funds 16 49
received
Additions to investment in redeemable (120,687)
preference shares

Net Cash Used In Investing Activities (102,881) (14,805)

CASH FLOWS (USED IN)/FROM

FINANCING ACTIVITIVE
Proceeds from bank borrowings 623,643 405,956
Repayments of bank borrowings (833,982) (233,526)
Repayments of hire-purchase payables (1,786) (1,803)
Repayment of lease liabilities (2,901)
Redemption of redeemable preference shares (112,448) (2,530)
from non- controlling interests
Dividends paid (7,923) (10,563)
Interest paid (38,290) (41,084)

Net Cash (Used In)/From Financing Activities (373,687) 116,450

NET INCREASE/(DECREASE) IN CASH 88,342 (45,315)

AND CASH EQUIVALENT

CASH AND CASH EQUIVALENTS AT 46,238 91,553

BEGINNING OF YEAR

CASH AND CASH EQUIVALENTS AT END 36 134,580 46,238

OF YEAR

5.2 Notes of Statement of Cash Flow

The cash flow statement is considered to be the most intuitive of all financial
statements, because it follows the cash obtained by the company through three main
methods- operation, investment and financing. And, the sum of these three methods is
called net cash flow. This section directly reports the cash flows and outflows of the
company’s main business activities. These activities may include buying and selling
inventory and supplies, as well as paying salaries to their employees. And, the cash
flow statement does not include any others forms of inflows and outflows, such as
investment, debt and dividends.
 5.3 Ratio Analysis of Statement of Cash Flow
5.3.1 Profitability Ratio
I. Gross Profit Margin
𝐺𝑟𝑜𝑠𝑠 𝑃𝑟𝑜𝑓𝑖𝑡
Gross Profit Margin= 𝑁𝑒𝑡 𝑆𝑎𝑙𝑒𝑠

𝐺𝑟𝑜𝑠𝑠 𝑃𝑟𝑜𝑓𝑖𝑡 208'126

2019 year= 𝑁𝑒𝑡 𝑆𝑎𝑙𝑒𝑠
= 992'124 =0.21 x 100%=21%
𝐺𝑟𝑜𝑠𝑠 𝑃𝑟𝑜𝑓𝑖𝑡 182'830
2020 year= 𝑁𝑒𝑡 𝑆𝑎𝑙𝑒𝑠
= 1'809'022 =0.1 x 100%=10%

II. Net Profit Margin

𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡
Net Profit Margin= 𝑁𝑒𝑡 𝑆𝑎𝑙𝑒𝑠

𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 62'424

2019 year= 𝑁𝑒𝑡 𝑆𝑎𝑙𝑒𝑠
= 992'124 =0.06 x 100%=6%
𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 51'584
2020 year= 𝑁𝑒𝑡 𝑆𝑎𝑙𝑒𝑠
= 1'809'022 =0.03 x 100%=3%

III. Return on Assets

𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒 (𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡)
Return on Assets= 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠

𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒 (𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡) 51'584

Return on Assets= 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠
= 647'854 =0.08 x 100%=8%

IV. Return on Equity

𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒 (𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡)
Return on Equity= 𝑆ℎ𝑎𝑟𝑒ℎ𝑙𝑑𝑒𝑟'𝑠 𝐸𝑞𝑢𝑖𝑡𝑦

𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒 (𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡) 62'424

2019 year= 𝑆ℎ𝑎𝑟𝑒ℎ𝑙𝑑𝑒𝑟'𝑠 𝐸𝑞𝑢𝑖𝑡𝑦
= 1,046,879+206,314 =0.05 x 100%=5%
𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒 (𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡) 51'584
2020 year= 𝑆ℎ𝑎𝑟𝑒ℎ𝑙𝑑𝑒𝑟'𝑠 𝐸𝑞𝑢𝑖𝑡𝑦
= 944,168+154,009 =0.046 x 100%=4.6%

V. Return on Capital Employed

𝑁𝑒𝑡 𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝐼𝑛𝑐𝑜𝑚𝑒
Return on Capital Employed= 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑑

𝑁𝑒𝑡 𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝐼𝑛𝑐𝑜𝑚𝑒 152'225 152'225

2019 year= 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑑
= 3'028'772−1'981'893 = 1'046'879 =0.15 x 100%=15%
𝑁𝑒𝑡 𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝐼𝑛𝑐𝑜𝑚𝑒 135'190 135'190
2020 year= 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑑
= 2'380'918−1'436'750 = 944'168 =0.14 x 100%=14%
 5.3.2 Liquidity Ratios
I. Current Ratio (Working Capital Ratio)
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠
Current Ratio= 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠 2'597'861
2019 year= 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 = 1'775'579 =1.46
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠 1'342'003
2020 year= 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 = 1'282'741 =1.06

II. Quick Ratio (Acid Test Ratio)

𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠−𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑖𝑒𝑠
Quick Ratio= 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠

𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠−𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑖𝑒𝑠 2'597'861−151'942

2019 year= 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
= 1'775'579
=1.38
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠−𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑖𝑒𝑠 1'342'003−170'179
2020 year= 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
= 1'282'741
=0.91

III. Times Interest Earned Ratio

𝐼𝑛𝑐𝑜𝑚𝑒 𝐵𝑒𝑓𝑜𝑟𝑒 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 & 𝑇𝑎𝑥 (𝐸𝐵𝐼𝑇)
Times Interest Earned Ratio= 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝐸𝑥𝑝𝑒𝑛𝑠𝑒𝑠

𝐼𝑛𝑐𝑜𝑚𝑒 𝐵𝑒𝑓𝑜𝑟𝑒 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 & 𝑇𝑎𝑥 (𝐸𝐵𝐼𝑇) 62,424

2019 year= 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝐸𝑥𝑝𝑒𝑛𝑠𝑒𝑠
= 41,084 =1.52 times
𝐼𝑛𝑐𝑜𝑚𝑒 𝐵𝑒𝑓𝑜𝑟𝑒 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 & 𝑇𝑎𝑥 (𝐸𝐵𝐼𝑇) 51,584
2020 year= 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝐸𝑥𝑝𝑒𝑛𝑠𝑒𝑠
= 38,290 =1.35 times

5.3.3 Efficiency Ratios

I. Assets Turnover Ratio
𝑁𝑒𝑡 𝑆𝑎𝑙𝑒𝑠
Assets Turnover Ratio= 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠
𝑁𝑒𝑡 𝑆𝑎𝑙𝑒𝑠 992,124
2019 year= 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠 = 1'514'386 =0.66
𝑁𝑒𝑡 𝑆𝑎𝑙𝑒𝑠 1,809,022
2020 year= 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠 = 1'190'594 =1.52

II. Inventory Turnover Ratio

𝐶𝑜𝑠𝑡 𝑜𝑓 𝐺𝑜𝑜𝑑𝑠 𝑆𝑜𝑙𝑑
Inventories Turnover Ratio= 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑖𝑒𝑠
𝐶𝑜𝑠𝑡 𝑜𝑓 𝐺𝑜𝑜𝑑𝑠 𝑆𝑜𝑙𝑑 1,626,192
Inventories Turnover Ratio= 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑖𝑒𝑠 = 161'060.5 =10.1 timesYield
6.0 Conclusion
In conclusion, we have used a profit and loss statement, balance sheet and cash
flow statement with the link of ratio analysis. Accounting statements play an important
role in business. This is because accounting measures financial information regarding
business and corporation. It also general postulation which emphasises the financial
statements of small businesses and corporations.
Besides that, Malton Berhad is a company undergoing a top period during this
economic critical moment. This is because the revenue of Malton Berhad is higher than
the expenses so it is in a status of earning income. A calculation can calculate a
company is earning income or deficit. The calculation is using the gross profit of
company minus expenses of company and we get the answer which is positive. From
what has been discussed above, we may safely draw the conclusion that Malton Berhad
is in status of earning.
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Turnitin of Assignment Accounting
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