Case Study 1: LQU Company SAOG (the "Company") is an Omani joint stock company registered under the Commercial Companies Law of the Sultanate of Oman The registered address, principal office and the manufacturing facility is located at Muscat, Sultanate of Oman The Company's shares are listed in the Muscat Securities Market. The principal activities of the company are the manufacture and sale of shipping equipment including associated works The given below are the details of the balances as at the end of the year 2019. The company had a balance of RO 325,000 in their Investments account. Along with that the company had cash and cash equivalents which included cash in hand RO 2,065, Bank balance in current accounts RO 1,065,582. The inventories at the end period included Raw material of RO 2.647,538, Finished stock RO 946,811, Work in progress RO 163,273 and other consumables of RO 423,554. The Trade and other receivables were calculated to be RO 58,000 for advances and deposits Prepayments of RO 43,688 and Accounts receivables of RO 5.235,403. The Trade and other payables included accrued expenses of RO 1,048,781, Trade payables of RO 1.627.724 and Other payables of RO 140,892 The provision for tax for the year was calculated to be RO 224,597 The company also had short term borrowings which comprised of short-term loans of RO 500,000 and Loans against trust receipts of RO 3,049,783 Property plant and equipment includes the following assets as given below with their respective amounts of cost and accumulated depreciation as at the year-end Cost RO Accumulated Depreciation RO Buildings 2.507,427 1.895,037 Plant and Machinery 11.891.000 8.507.355 Extrusion Equipment 4,998.000 4.992 377 Office and other equipment 469,000 449.755 Furniture and fittings 162.000 157,727 Motor vehicles 68,000 65.652 Computer installations 346,368 315.969 The depreciation was charged for the year as follows: RO Depreciation on Plant and Buildings 49.987 Machinery, Buildings to be Plant and Machinery 846,681 included in cost of sales and the Extrusion Equipment Nil remaining depreciation is Office and other equipment 26.691 allocated as general and Fumiture and fittings 14,660 administrative cost Motor vehicles 4.324 Computer installations 11322 The annual sales revenue amounted to RO 18,623,000. Apart from that the company had other income consisting of insurance claims received RO 5,300 and gain from disposal of asset RO 332,747. The share capital of the company consisted of 10,000,000 ordinary shares of 500 baiza each of which the company had 6,714,290 issued and paid up shares. The deferred tax liability at the year-end amounted to RO 82,800 and the Employee end of service benefits were RO 296,784 The company had a policy of transferring amounts to legal reserve each year and it had RO 1,119,000 at the end of the year. Retained earnings before adjusting the net profit balance amounted to RO 2,394,325 The cost of sales included the following: Raw material consumed RO 13,091,758, labour cost RO 982,357 and other production cost RO 289,243 Finance cost amounted to RO 157,186 Salaries and staff related cost amounted to RO 854,431 Administrative and general expenses include Directors' remuneration of RO 30,157, other administrative overheads of RO 316,835 and directors sitting fees of RO 20,308 Selling and distribution expenses included Ro 492,901 for outward freight charges, travelling and sales commission RO 95,396 and other distribution cost of RO 358,845 The tax expense for the year amounted to RO 190,959 Unrealized loss on Fair value changes on available for sale investments RO 12,290 Basic earnings per share is calculated by dividing the net profit for the year by the number of shares outstanding during the year. Net assets per share is calculated by dividing the net assets at the end of the reporting period by the number of shares outstanding You are required to prepare Statement of Comprehensive Income and Statement of Financial position for the year ended 2019 in accordance with IFRS and other governing laws and practices followed in Oman. (15 marks)