COURSE CODE: ACC117/106

DECLARATION FORM OF GROUP PROJECT 2

Name of group leader and members: Student ID:

NURUL AIN AMEERA BINTI ARIS 2022897562
NURUL ALEEYA BINTI RAZALI 2022463294
MUHAMMAD HAFIZ HAFIZI BIN ROHIM 2022871748

Group: KAM1102H

DECLARATION: We declare that no part of this assignment has been copied from other
person's work except when due acknowledgement is made in the text, and no part of this
assignment has beenwritten for me by any other person except where such collaboration
has been authorized by the lecturer concerned

Signature of group leader: Date: 16 JULY 2023

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
GROUP PROJECT
2
(SEMESTER MARCH – AUGUST
2023)

PREPARED BY:
NAME STUDENT ID

1 NURUL AIN AMEERA BINTI ARIS 2022897562

2 NURUL ALEEYA BINTI RAZALI 2022463294

3 MUHAMMAD HAFIZ HAFIZI BIN ROHIM 2022871748

GROUP: KAM1102H

PREPARED FOR:

MADAM NUR IZZATUL SYAFIKAH BINTI AHMAD

DATE OF SUBMISSION:

16 JULY 202

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 INTRODUCTION TO FINANCIAL ACCOUNTING /
INTRODUCTION TO FINANCIAL ACCOUNTING AND REPORTING
(ACC117 / ACC106)

GROUP PROJECT 2 (15%)

COURSE LEARNING OUTCOME:

This assignment is design to enhance students’ teamwork through analysing financial

statements using simple financial ratios for sole proprietorship business (C4).

INSTRUCTIONS TO ALL STUDENTS:

1. Form a group with a maximum of 4 members.

2. Answer all questions.
3. Submit the answers in a proper report format including the declaration and cover
page with the details required. Only the group leader needs to submit the assignment
on behalf of the group.
4. If the answers found similar or the same with the other group(s), a penalty will be
imposed on all groups involved.
5. The deadline for submission is on 16 July 2023

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QUESTION

Rahman Enterprise and Salman Trading are selling groceries at Bandar Seremban 3, Negeri
Sembilan. The following balances have been extracted from the Statement of Profit or Loss
and the Statement of Financial Position of both businesses for the year ended 31 December
2022.

Rahman Enterprise Salman Trading

RM RM
Short term loan - 6,000
Long term loan 48,000 25,000
Bank overdraft 2,500 -
Accounts payable 49,000 39,000
Cash at bank 20,000 28,000
Cash in hand 12,000 15,000
Accounts receivable 25,000 22,000
Total expenses 48,000 50,000
Closing inventory 25,000 16,000
Opening inventory 15,000 10,000
Net sales 190,000 150,000
Net purchases 56,000 52,500

Additional information:

1. 80% of net sales are credit sales.

2. Assume there are 365 days in a year.

Required:

a. Compute all the following ratios for both businesses.

i. Current ratio
ii. Quick ratio
iii. Gross profit margin
iv. Net profit margin
v. Inventory turnover ratio
vi. Accounts receivable collection period
(30 marks)

b. Compare and interpret the performance of Rahman Enterprise and Salman

Trading in terms of their liquidity, profitability, and efficiency.
(12 marks)

c. Identify FOUR (4) possible options to be considered by a business to overcome

its low profitability ratios.
(4 marks)

d. Discuss any TWO (2) possible actions to be taken by a marketing manager of a

company to improve the inventory turnover ratio.
(4 marks)
(Total: 50 marks)
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