Question

AllHome Bhd. is a hardware retail company with financial year runs from January 1 through December 31. In 2018. AllHome Bhd. sold 15000 units of its product at a price of RM480 per unit. The company reported estimated sales returns/return inwards in 2018 of RM240000. AllHome actually purchased 17000 units of its product from its manufacturer in 2018 at an average cost of RM380 per unit. Operating expenses (excluding depreciation) for All Home Bhd. in 2018 were RM410000 and depreciation expense was RM100,000. AllHome had RM2000000 in total debt throughout 2018. This debt carried an annual interest rate of 12%. Finally, AllHome tax rate was 30%. a) Calculate the NET sales for the year b) Calculate the cost of goods sold c) What is interest expense amount? d) The amount of taxes need to be paid is e) The net profit is f) What is the net profit ratio for the company? What does the net profit margin ratio mean? Choose from the list 1. gross profit per RM1 sale 2. net profit per RM1 sale 3. net profit per 200% sale 4. net profit per gross profit Format : 6960000 Format : 8600000 Format: 720000 Format : 886000 Format : 922000 Format : 0.04 Format : 6

Answer 1

a) Net Sales - Total sales - sales returns Flisooo units X RM 480] - [Rm 840,000) - RM 7,200,000 - RM 240,ood = RM 6,960,000 6) cost of goods sold. = opening stock + puschaves – closing stock opening stock = o pugichases = 6,460,000 : [17000 x Rm 380) - closing stock =(760,000) Caooo x RM 380) unis cost of goods gold : 5,700,000 c) interest expense amount: total debt thorough out 2018= Rm 2.000.000 debt interest rate -12% interest expense = Rm 2,000,000 x 12% - RM 240,000

of tanes need d) to be paid amount particulary Sales Rm (+) plosing stock 6,960,000 760,000 (6,460,000) (-) purchases 1,260,000 Gros (-) interest (1) ope sabiogesponse 940, ooo 410,000 100,000 510,000 (-) Keo xe Laban net porofil tax @ 30% (510,000 x 30%) 153,000 partid above. e) Net profit : sprogo. RM 510,000 this is already calculated in please refer past; d. f) Net profit ratio = Net profit - Net sales 510000 6960000 -0.07 Net profit ratio means "Net profit pest Rm 1 sale.