COEB442 Engineering Economics Semester 1 2016/2017

Assignment 1

Below is information gathered from the Financial Statements of Alladin

Sdn Bhd for financial year end July 2016.
ITEM
Building
Cash
Inventories
Revenues from sales
Computer Equipment
Salary Expenses
Vehicles
Prepaid rental
expenses
Account receivables/
Debtors
Account payables/
Creditors
Administration
expenses
Long-term Payables
Cost of goods sold
Accrued insurance
expense

RM
1,000,000
740,000
30,000
1,200,000
40,000
100,000
150,000
10,000
30,000
80,000
100,000
600,000
800,000
20,000

To asses Alladins financial performance, the accountant wants few

analysis using the data provided.
Required:
i.

Is the company liquidity considered good? Support your answer

ii.

using two liquidity ratios.

What can you tell about the difference between the two ratios

iii.

calculated in (i).
If the average current ratio for industry is 9, what can u say about
the performance of the company?

iv. Prepare the Profit & Loss and Balance Sheet for Alladins Sdn Bhd.