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please very very important ... Accounts Receivables CASE NO#01 The following information relates to the business of Al Batinah Group of Companies, and the owner

please very very important ...
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Accounts Receivables CASE NO#01 The following information relates to the business of Al Batinah Group of Companies, and the owner is concerned about the profitability and financial structure of his business at 31 December 2019, the following information is provided: Details 31 Dec 2020 (OMR) 31 Dec 2021 (OMR) Sales 700,000 750,000 Cost of goods sold 425.000 525,000 Inventories 33,000 45,000 Other expenses 50,000 75,000 Net profit before Interest and Tax 225,000 150,000 Shareholders fund 400,000 400,000 Net profit after Interest and Tax 175.000 125,000 Capital employed 300.000 333.000 Cash 25,000 15,000 Bank (10,000) 20,000 26,000 37,000 Accounts Payables 50.000 40,000 Marketable Securities 5.000 Noncurrent liabilities 350,000 390,000 You are required: (a) Calculate the following ratios for 2020 and 2021: Gross Profit Margin .Net Profit Margin . Return on Capital employed Return on Investment Current Ratio Quick Ratio Inventory turnover Ratio (b) Write a report to the owner highlighting strengths and areas of concern in relation to the profitability, liquidity and financial stability of the business including recommendations to improve areas of concern (approximately 250 words). Accounts Receivables CASE NO#01 The following information relates to the business of Al Batinah Group of Companies, and the owner is concerned about the profitability and financial structure of his business at 31 December 2019, the following information is provided: Details 31 Dec 2020 (OMR) 31 Dec 2021 (OMR) Sales 700,000 750,000 Cost of goods sold 425.000 525,000 Inventories 33,000 45,000 Other expenses 50,000 75,000 Net profit before Interest and Tax 225,000 150,000 Shareholders fund 400,000 400,000 Net profit after Interest and Tax 175.000 125,000 Capital employed 300.000 333.000 Cash 25,000 15,000 Bank (10,000) 20,000 26,000 37,000 Accounts Payables 50.000 40,000 Marketable Securities 5.000 Noncurrent liabilities 350,000 390,000 You are required: (a) Calculate the following ratios for 2020 and 2021: Gross Profit Margin .Net Profit Margin . Return on Capital employed Return on Investment Current Ratio Quick Ratio Inventory turnover Ratio (b) Write a report to the owner highlighting strengths and areas of concern in relation to the profitability, liquidity and financial stability of the business including recommendations to improve areas of concern (approximately 250 words)

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