An experienced budget analyst at Al Rawa, has been charged with assessing the firms financial performance during 2021 and its financial position at year-end 2021. To complete this assignment, she gathered the firms 2021 financial statements (below). In addition,

he obtained the firms ratio values for 2019 and 2020, along with the 2021 industry average ratios (also applicable to 2019and 2021).

LG1

Q2. Analyze the firms current financial position from both a cross-sectional and a time-series viewpoint. Break your analysis into evaluations of the firms liquidity, activity, debt, profitability, and market. (10 marks) ( 2 marks each category)c5

INCOME STATEMENT FOR AL RAWA FOR THE YF ENDED DEC 2021 IS GIVEN BELOW Al Rawa Statement of Retained Earnings for the year enc December 31, 2021 Retained earnings (January 12021) Plus: Net Profits after taxes (2021) Less : Cash dividends(paid during 2021) $50200 Retained earnings balance (December 31,2021)_\$73,10 AI Rawa Historical and Industry Average Ratios ARKING RUBRICS INCOME STATEMENT FOR AL RAWA FOR THE YF ENDED DEC 2021 IS GIVEN BELOW Al Rawa Statement of Retained Earnings for the year enc December 31, 2021 Retained earnings (January 12021) Plus: Net Profits after taxes (2021) Less : Cash dividends(paid during 2021) $50200 Retained earnings balance (December 31,2021)_\$73,10 AI Rawa Historical and Industry Average Ratios ARKING RUBRICS