Year 2012 RM 'millions 2011 RM'millions 2010 RM'millions Annual Amounts: Net Income 90 60 25 Gross...

Year	2012 RM 'millions	2011 RM'millions	2010 RM'millions
Annual Amounts:

Net Income	90	60	25
Gross margin on sales	520	380	200
Cost of goods sold	980	620	300
Operating expenses	380	295	165
Income tax expense	50	25	10
Dividends declared and paid	35	15	5

End-of-Year Amounts:

Long-term assets	240	220	180
Long-term debt	85	65	40
Current liabilities	65	55	35
Cash	20	5	10
Accounts receivable	85	70	40
Merchandise inventory	120	85	60
Paid-in capital	205	205	205
Retain earnings	110	55	10

During each of the three (3) years, 10 million shares of common stock were outstanding. Assume that all sales were on account and that the applicable market prices per share of stock were RM 90.00 for 2011 and 2012.

Compute each of the following for each of the last two years, 2011 & 2012.
1. Average collection period for accounts receivables
2. P/E ratio
3. Dividend-payout percentage
4. Dividend yield
5. Gross profit rate

Expert Solution

jeff jeffy answered 1 year ago

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