ANNOUNCEMENTS REGARDING ADIZAN CASE STUDY

Assalamualaikum and dear students,


For the requirements of the case study, there are a few clarifications that I want to make.


1. REQUIREMENT A - MANAGEMENT ACCOUNTING

• You need to produce Production Budget in terms of units only.

2. REQUIREMENT B - FINANCIAL ACCOUNTING AND AIS

• The Budgeted Income Statement and Budgeted Balance Sheet are to be prepared on ANNUAL BASIS instead of QUARTERLY BASIS. 
• Only Cash Budget needs to be prepared on QUARTERLY BASIS.

3. REQUIREMENT C - FINANCIAL MANAGEMENT

• For the purpose of the 1st presentation, you are only required to prepare answers to QUESTION 1 ONLY.
• Questions 2 - 4 are to be answered in the final report.
• For you to comment the financial ratios in question 1, you need to use the following comparative figures.

       Industry's Average

• Current ratio - 3.70 X
• Quick ratio - 2.10 X
• Inventory turnover ratio - 14.30 X
• Average collection period - 89 days
• Fixed asset turnover - 2.50 X
• Total asset turnover - 1.75 X
• Debt ratio - 27.3%
• Times interest earned - 4.50 X
• Gross profit margin - 28.92%
• Net profit margin - 6.7%
• Return on equity - 7.4%
• Return on asset - 6.5%
• EPS - 15 sen