Extracted text: The following are Statement of Financial Position and Statement of Comprehensive Income of Lala Electronics Sdn. Bhd. Table 3: Statement of Financial Position and Statement of Comprehensive Income of Lala Electronics Sdn. Bhd. Lala Electronics Sdn. Bhd. Statement of Financial Position as at 31/12/2020 Non-Current Asset: Investment Fixed Assets at cost RM 270,000 RM 1,596,000 Accumulated Depreciation Net Book Value (857,000) 739,000 Current Asset: Cash Account Receivable Inventory Prepaid Expenses 178,000 678,000 1,329,000 56,000 2,241,000 3,250,000 Total assets Current Llabilities: Account Payable Interest Payable Income Taxes Payable Other Accrued Liabilities Total Current Liabilitles 148,000 36,000 448,000 191,000 823,000 Long Term Liablitles: Bank Loan 631,000 1,454,000 Total Liabilities Equity: Capital Appropriate Profit (Retained Earnings) 782,000 1,014,000 1,796,000 3,250,000
Extracted text: Lala Electronics Sdn. Bhd. Statement of Comprehensive Income for the year ended 31/12/2020 RM 3,992,000 (2,680,000) RM Sales (-) COGS Gross Profit (-) Selling, General and Administrative expenses EBIT 1,312,000 (912,000) 400,000 (85,000) 315,000 (114,000) 201,000 (-) Interest Expense EBT (-) Income Taxes Earnings after Taxes (i) Calculate the cash conversion cycle for Lala Electronics Sdn. Bhd. (ii) Based on the answer in (i) above, justify your answer.