1. Case Analysis: Al Ismail Fashions (Alf) is a garment company, located in Alkhwair Muscat, which consists primarily of much smaller garment makers. Alf was started 13 years ago by Ahmed and Salim, who has over 15 years of experience with a major garment manufacturer. And the partnership initially blended very well. Ahmed is extremely creative with a real talent for merchandising. Mainly as a result of his knowledge, the AIF is known for its quality and "in" fashions. Salim has contributed to merchandising and marketing ideas, but has mainly assumed the duties of the firm's chief operating officer. Ahmed has had little interest in the financial aspects of the company as he preferred to work on fashion designing and development of marketing strategies. A few months ago, however, he decided that he had better become more involved with the company's financials. Ahmed want to analyse the financial statement of the company to know the current financial performance and positions of the company. The following are the financial details of the AIF. OMR 4.000 4500 3.750 9.000 Liabilities Equity share capital Accounts Payable Reserves and surplus Bills payable Long term borrowings Outstanding Salaries Loan from Bank Preference share capital Bank overdraft Tax outstanding 850 5.250 6,600 OMR Assets 27,800Furniture 1,550Cash in hand 2.550Bills receivables 950Land 6.520Marketable securities 8SO Cash in bank 3.450Building 5.265Prepaid expenses 825Cars & Trucks 590Account Receivabies Inventory Income earned but not received Machinery Equipment 50,350Total 850 33350 1.150 2150 430 6250 2220 50,350 Total Other information Particulars OMR 330.000 155.000 Sales Cost of goods sold Administration expenses Selling & Distribution exp. Interest received 33.000 44.000 12.200 Rent Received 2000 Commission received 1.750 Marks Requirement: 2 Calculate the following from the additional information given G Gross profit 0.5 H Net profit 0.5 Marks Requirement: 3 Calculate the following ratios: Return on capital employed 1.0 Current ratio 1.0 K Liquid ratio 1.0 1.0 Return on Equity Gross Profit & Net Profit Margin 1.0 M N 1.0 Give a brief report on the financial position of the company based on the above figures