OMR "000 OMR "000 1640 3060 Non-Current Asset: Property .plant and Equipment Current Assets Inventory Trade receivables 560 620 1580 680 Bank 200 1500 180 2320 Current Liabilities Trade Payables Other Payables (940) (520) (1200) (500) 1700 RATIO ANALYSIS Sohar Oman Limited would like to acquire a suitable private limited liability Company The board of directors of Sohar Limited engaged the service of a financial consultant to carry out a critical financial analysis of the two companies. Nizwa Limited and Salalah Limited. Both companies operate in the same industry and their management have indicated that they would be receptive to the acquisition The draft financial position of the 2 companies are as follows: Statements of profit or loss NIZWA LTD SALALAH LTD OMR"000 OMR"000 Revenue 3980 2240 Cost of Sales (2640 (1588) Gross Profit 1340 652 Operating expense (496) (300) Interest expense 140 40 Profit before taxation 704 302 Tax expense (260) 100) Profit for the year 444 212 1460 620 Net current assets: 40 Non-current liabilities: Loan notes 1280) (880) 2220 1980 Net Assets Equity : Ordinary Share Capital Retained Earnings 1800 1760 420 220 2220 1980 Required Statements of financial nosition As the Financial consultant require TD SALALA Compute the following specific ratios : (1) Profitability ratios : gross profit margin and net profit margin. (2) Liquidity ratios : acid test ratio,current ratio, trade receivable period. (3) Long term financial stability ratios: gearing ratio and proprietary ratios. (4) Efficiency ratios: total assets turn over and non-current asset turnover