CASE NO #01 Mohammed Abdullah is a trade supplier who has been approached by ABC Builders who are requesting credit terms for the first time. Their managing director has provided Mohammed Abdullah with the following extracts from the final accounts for the past two years and Mohammed Abdullah has approached you for advice. Details Sales turnover Cost of goods sold Buildings Inventory Operating expenses Ordinary share capital Long term loan Retained earnings Bank Debtor's Creditors a) Calculate the following ratios for both years: 2019 (OMR) 810,000 360,000 158,000 35,000 220.000 310,000 50,000 185,000 (40,000) 138,000 2020 (OMR) 860,000 250,000 136,000 78,000 280,000 310,000 80.000 250.000 25,000 158,000 100.000 95.000 i) Gross profit Ratio ii) Operating Profit Ratio iii) Return on capital employed iv) Current ratio b) You are required to offer an advice to Mohammed Abdullah based on your calculations with regards to the viability of engaging in a credit relationship with ABC Builders