Q1: Financial statements of Ohio State Company are given below for 2019 and 2020: 2019 (OMR) 2020 (OMR) Sales 2,000,000 1,500,000 Cost of sales 1,500,000 1,300,000 Gross Profit 500,000 200,000 Overhead expenses 150,000 100,000 Profit before interest and tax 350,000 100,000 Loan interest 15,000 10,000 Profit before tax 335,000 90,000 Tax 85,000 45,000 Net profit 250,000 45,000 2019 (OMR) 2020 (OMR) Non-current assets 250,000 300,000 Current assets: Inventory 65,000 90,000 Receivables 150,000 275,000 Bank 65,000 55,000 Total assets 530,000 720,000 Equity and reserves: Share capital 200,000 300,000 Reserves 75,000 150,000 Non-current liabilities: 9% Bank loan 15,000 20000 Current liabilities: Payables 150,000 200,000 Bank overdraft 25,000 25,000 Tax payable 65,000 25,000 Total liabilities and Equity 530,000 720,000

(a) Calculate DuPont ratio.

(b) Calculate Altmans Z score.

(c) Give appropriate analysis based on the results. Your analysis should be based on the following aspects: (i) Operating efficiency

(ii) Asset effectiveness

(iii) Capital structure

(iv) Level of financial distress faced by the company