Case Analysis:

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 firms 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 companys 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
Equity share capital	23,200	Furniture	2,000
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
Preference share capital	5,250	Prepaid expenses	750
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
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
Commission received	1,750

As a Finance Manager of the company you are required to:

Requirement : 1	Calculate the following from the Balance Sheet:
A	Total fixed assets
B	Total long term liabilities
C	Total current assets
D	Total current liabilities
E	Shareholders funds
F	Capital employed
Requirement : 2	Calculate the following from the Income Statement:
G	Gross profit
H	Net profit
Requirement : 3	Calculate the following ratios:
I	Return on capital employed
J	Current ratio
K	Liquid ratio
L	Return on Equity
M	Gross Profit & Net Profit Margin
N	Give a brief report on the financial position of the company based on the above figures.