Al Asasil Fashions (AAF) is a garment company, located in Ghala, Muscat, which consists primarily of much smaller garment makers.AAF was started 12 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 AAF 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 AAF. Balance Sheet of Al Asasil Fashions - 2018 Liabilities OMR Assets OMR 23,200 Furniture 2,000 Equity share capital Accounts Payable 1,250 Cash in hand 2,500 Reserves and surplus 2,050 Bills receivables 2,750 Notes Payable 850 Land 8,000 Long term borrowings 6,120 Marketable securities 750 Outstanding Salaries 450 Cash in bank 4,250 Loan from Bank 2,945 Building 6,500 5,250 Prepaid expenses 750 Preference share capital Bank overdraft 425 Cars & Trucks 3,250 Tax outstanding 250 Account Receivables 1,000 Inventory 2,150 Income earned but not received 420 Machinery 6,250 Equipment 2,220 Total 42,790 Total 42,790 Income statement of Al Asasil Fashions - 2018 Particulars OMR Sales 220,000 Particulars OMR Sales 220,000 Cost of goods sold 135,000 Administration expenses 23,000 Selling & Distribution exp 34,000 Interest received on debentures 12,200 Income from rent 2,000 Administration expenses 23,000 Selling & Distribution exp. 34.000 Interest received on debentures 12,200 Income from rent 2,000 Commission received 1,750