Nusantara bumi corporation | Accounting homework help

  

NUSANTARA BUMI CORPORATION

Statement of Financial Position as at December 31, 

  

2019(RM)

2018(RM)

2017(RM)

 

Assets

 

Cash and equivalents

612,492

217,961

131,085

 

Account receivables

454,760

554,200

400,522

 

Inventories

414,770

355,642

400,522

 

Prepaid expenses

0

66,000

54,000

 

Fixed assets 

1,937,900

2,437,900

1,837,900

 

Accumulated depreciation 

621,370

427,580

183,790

 

Total assets 

2,798,552

3,204,123

2,650,917

 

 

Liabilities and Equity 

 

Accounts payable

236,297

299,600

243,566

 

Accrued expenses 

26,435

36,202

32,400

 

Current maturities 

100,000

296,400

302,600

 

Income taxes payable 

139,804

128,453

125,663

 

Long-term debt 

800,000

986,300

222,400

 

Common stock RM0.20 par value

1,000,000

1,000,000

1,000,000

 

Paid-in capital 

500,000

500,000

500,000

 

Retained earnings 

(3,984)

(42,832)

224,288

 

Total liabilities and equities 

2,798,552

3,204,123

2,650,917

 

NUSANTARA   BUMI CORPORATION

 

Statement of Financial Performance for Years Ending December 31,

 

2019(RM)

2018(RM)

2017(RM)

 

Net Sales

3,055,563

2,983,410

3,245,427

 

Cost of Goods Sold

2,205,830

2,104,451

2,056,670

 

Gross Profit

849,733

878,959

1,188,757

 

Selling and Administrative Expenses

328,523

265,525

278,855

 

General expenses

203,520

200,455

189,962

 

Depreciation

193,790

243,790

183,790

 

Earnings before interest and tax

123,900

169,189

536,150

 

Interest expense

63,000

89,789

85,750

 

Earnings before tax 

60,900

79,400

450,400

 

Tax (28%)

17,052

22,232

126,112

 

Earnings after tax

43,848

57,168

324,288

Nusantara Bumi Corporation is a company dealing with textiles manufacturing and has been in the market for almost 10 years. Since the textile industry is getting more competitive, Nusantara Bumi is planning for business expansion. Using the provided financial statements, you are assigned to conduct a comprehensive analysis on Nusantara Bumi Corporation in order to identify the strengths and weaknesses of its financial position.

Using average values, compute any two relevant financial ratios for each area that are useful to highlights Nusantara Bumi’s overall financial performance for 2019 and 2018, related to:

i. Ability to meet maturing obligations.

(4 marks)

ii. Ability to service debt and the degree of financial risk.

(4 marks)

iii. Effectiveness in managing assets and efficiency in handling operations.

(4 marks)

iv. Profitability and overall operating results.

(4 marks)

v. Draw inferences concerning Nusantara Bumi Corporation’s financial performance in 2019 relative to 2018 based on calculated financial ratios. Your discussion should include their effectiveness in managing assets and efficiency in handling operations, the degree of financial risks, profitability and overall operating results.

(9 marks)







Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10