Outcomes for Assignment : Understand the basic financial statements, calculate financial ratios and analyze and interpret those ratios.

Graduate Attributes Covered:

4. Lifelong learning.

5. Autonomy and Accountability

______________________________________________________________________________________________

Student ID: _________________ Name: __________________________________

Section No: _________________ Subject: ________________________________

Due Date: 15 December 2021

Date of Submission: _____________________ (to be filled in by the student)

1. Case Analysis:

Al Ismail Fashions (AIF) is a garment company, located in Alkhwair Muscat, which consists primarily of much smaller garment makers. AIF was started 13 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 AIF 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 AIF.

Liabilities	OMR	Assets	OMR
Equity share capital	27,800	Furniture	4,000
Accounts Payable	1,550	Cash in hand	4,500
Reserves and surplus	2,550	Bills receivables	3,750
Bills payable	950	Land	9,000
Long term borrowings	6,520	Marketable securities	850
Outstanding Salaries	850	Cash in bank	5,250
Loan from Bank	3,450	Building	6,600
Preference share capital	5,265	Prepaid expenses	850
Bank overdraft	825	Cars & Trucks	3,350
Tax outstanding	590	Account Receivables	1,150
		Inventory	2,150
		Income earned but not received	430
		Machinery	6,250
		Equipment	2,220
Total	50,350	Total	50,350

Other information
Particulars	OMR
Sales	330,000
Cost of goods sold	155,000
Administration expenses	33,000
Selling & Distribution exp.	44,000
Interest received	12,200
Rent Received	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:	Marks
A	Total fixed assets	0.5
B	Total long term liabilities	0.5
C	Total current assets	0.5
D	Total current liabilities	0.5
E	Shareholders funds	0.5
F	Capital employed	0.5
Requirement : 2	Calculate the following from the additional information given	Marks
G	Gross profit	0.5
H	Net profit	0.5
Requirement : 3	Calculate the following ratios:	Marks
I	Return on capital employed	1.0
J	Current ratio	1.0
K	Liquid ratio	1.0
L	Return on Equity	1.0
M	Gross Profit & Net Profit Margin	1.0
N	Give a brief report on the financial position of the company based on the above figures.	1.0

Academic Integrity & Plagiarism Policy: The student should be ready to prove the authenticity of the work done. If any forms of plagiarism/reproduction of answers are discovered, student will be asked to repeat the assignment, if first offence; otherwise will be awarded zero marks.

Each student should select a different company, if same company is selected by more than one student the method of translation should be different.

To my Lecturer Mr.V.Muruga Prakash/Mr.Talal

I certify that all of this work is done by me as in accordance with the Academic Integrity / Plagiarism policies. I am responsible for any violations with regard to this.

Students signature: _____________________________

Submission Date: _____________________________

Instruction for completion of Report:

The assignment can be submitted in A4 size paper one paragraph about each question can be answered. The assignment has to be handwritten. No printed assignments are accepted. \

Handwritten Assignment to be submitted online individually. Printed copy will not be accepted.

Every student has to take a different company and prepare their own assignment, No Copy / plagiarism / cheating will be acceptable.