Al Maha Ceramics SAOG Statement of financial position as at 31 December 2018 (Expressed In Omani Rial) Hotes 2018 2017 ASSETS Non-current assets Property, plant and equipment 8,216,931 8,617,820 Investment property 225,000 225,000 Total non-current assets 8,441,931 8,842,820 Current assets Financial assets at fair value through profit or loss 180,787 183,396 Inventories 1.846.954 1,990,933 Trade receivables and other financial assets at amortised cost 2,006,848 1,922,909 Cash and bank balances 11 390,741 391,399 Total current assets 4,427,330 4, 458,637 Total assets 12.869,261 13,331,457 EQUITY AND LIABILITIES Capital and reserves Share capital 5,500,000 5,500,000 Share premium 88, 199 88, 199 Legal reserve 1.596, 402 1,476,086 Retained earnings 2,367,213 2,773,026 Total capital and reserves 9,551,014 9.037,311 Non-current liabilities Employees' terminal benefits 14 243,954 222,310 Deferred tax liability 24 358,178 343,750 Total non-current liabilities 602,132 566,060 Current liabilities Trade and other payables 15 2,635.315 2,692,372 Short-term bank borrowings 16 80.000 Government soft loan 17 35,714 Total current liabilities 2.715.315 2.928.036 Total equity and liabilities 12,869,261 13,331,457 Net assets per share 25 0.174 0.179Al Maha Ceramics SAOG Statement of cash flows for the year ended 31 December 2018 (Expressed in Omani Rial) Notes 2018 2017 Operating activities Net profit after tax for the year 1,203, 165 1,505,6-18 Adjustments for: Depreciation 5 707,899 655,932 Unrealised fair value losses on financial assets at fair value through profit or loss 7 2,609 1,747 Loss on sale of property, plant and equipment 22 31,002 267 Finance costs 23 33,961 18,226 Deferred tax liability 24 14,428 38,181 Operating profit before working capital changes 1,993,064 2,220,001 Working capital changes Inventories 143,979 (184,873) Trade receivables and other financial assets at amortised cost (89,601) (359,930) Trade and other payables (257,057) 1,136,090 Employees' terminal benefits, net 21,644 34,726 Net cash provided by operating activities 1,812,029 2,846,014 Investing activities Purchase of property, plant and equipment 5 (346,012) (1,486,574) Proceeds from sale of property, plant and equipment 8,000 8,903 Net cash used in investing activities (338,012) (1,477,671) Financing activities Cash dividend paid 34 (1,485,000) (1,587,600) Net movement in Government soft loan (35,714) (142,857) Net movement in short-term bank borrowings 80,000 (778) Finance costs paid 23 (33,961) (18,226) Net cash used in financing activities (1,474,675) 1,749,461) Net decrease in cash and cash equivalents (658) (381,118) Cash and cash equivalents, beginning of the year 391,399 772,517 Cash and cash equivalents, end of the year 11 390,741 391,399This problem is based on the 2017-2018 of the company Required: a. Compute the following profitability measures for the year ended Jury ww, aww 1. Return on investment, based on net earnings (perform a DuPont analysis). 2. Return on equity, based on net earnings and total equity. 3. Price/earnings ratio. 4. Dividend yield. Use ! 5. Dividend payout ratio. b. Compute the following liquidity 1. Working capital. 2. Current ratio. 3. Acid-test ratio. c. Compute the following activity measures 1. Number of days' sales in accounts receivable, based on a 365-day year. 2. Number of days' sales in inventory, based on a 365-day year. 3. Accounts receivable turnover. 4, Inventory turnover. 5. Turnover of net property, plant, and equipment. d. Compute the following financial leverage measures 1. Debt ratio. 3 Debt/anuity ratioAl Maha Ceramics SAOG Statement of profit or loss and other comprehensive income for the year ended 31 December 2018 (Expressed in Omani Rial) Notes 2018 2017 Revenue from contracts with customers 18 8, 436,617 8,656,929 Cost of revenue 19 (5,525,972) (5,329,646) Gross profit 2,910,645 3,327,283 Other Income 20 27,450 111,298 2,938,095 3, 438,581 Expenses Selling and distribution costs 21 (834,827) (939,254) General and administrative expenses 22 (627,630) (649,660) Finance costs 23 (33,961) (18,226) (1,496,418) (1,607,140) Profit from operations 1,441,677 1,831,441 Unrealised fair value losses on financial assets at fair value through profit or loss 7 (2,609) (1,747) Net profit before tax for the year 1, 439,068 1,829,694 Income tax expense 24 (235,903) (324,046) Net profit after tax and total comprehensive income for the year 1, 203, 165 1,505,6-48 Basic earnings per share 26 0.022 0.027Al Maha Ceramics SAOG Statement of changes in shareholders" equity for the year ended 31 December 2018 (Expressed in Omani Rial) Retained Notes Share capital Share premium Legal reserve earnings Total At 31 December 2016 5,250,000 88, 199 1, 325,521 3,255,5-43 9,919,263 Net profit after tax and total comprehensive income for the year 1,505,6-18 1,505,648 Transferred to the legal reserve 13 150,565 (150,565) Cash dividend paid 34 (1,587,600) (1,587,600) Stock dividend 34 250,000 (250,000) At 31 December 2017 5,500,000 24.199 1,476,084 2,773,026 9,837.311 Effect of first time adoption of IFRS 9 and 15 (3,662) (3,662) At 1 January 2018 5,500,000 22 199 1,476,086 2,769,364 9,833,649 Net profit after tax and total comprehensive income for the year 1,203,165 1,203,165 Transferred to the legal reserve 13 120,316 (120,316) Cash dividend paid (1,485,000) (1,485,000) At 31 December 2018 5,500,000 88, 199 1,596,402 2,367,213 9,551,814