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Mr. Hussein is a trade supplier who has been approached by Al Shinas Trading LLC which is requesting credit terms for the first time. Their
Mr. Hussein is a trade supplier who has been approached by Al Shinas Trading LLC which is requesting credit terms for the first time. Their managing director has provided Mr. Hussein with the following extracts from the final accounts for the past two years and Mr. Hussein has approached you for advice. Details 2019 (OMR) 2020 (OMR) Accounts payables 75,000 65,000 Sales revenue 620,000 910,000 Equipment 30,000 22,000 Cost of Goods sold 400,000 350,000 Machinery 3,150,000 3,128,000 Inventory 50,000 80,000 Operating costs 192,000 170,000 Non-operating expenses 25,000 15,000 Common share capital 550,000 550,000 Bonds 95,000 90,000 Retained earnings 70,000 90,000 Bank (25,000) 65,000 Accounts Receivables 50,000 85,000 Long-term loan 100,000 70,000 Shareholders fund 770,000 800,000 Cash 100,000 75,000 Prepaid expenses 500 200 A) Being a student of financial management course, evaluate and compare the Profitability and Liquidity performance of Al Shinas Trading LLC using the tools (ratio analysis) for the two years given in the above information? colo
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