Question 1

The following ratios and financial items relate to Al Hassan LLC for the year ending 30 September, 2019.

Trade receivables collection period	140 days
Trade payables payment period	104 days
Gross profit ratio (as a percentage of sales)	20%
Inventory turnover (based on average inventory)	4 times
Net Profit for the year as a percentage of sales	4.5%
Non-current assets turnover	6 times
Current ratio	1.8:1
Administrative expenses	Omani Rials 54,175
Interest on 12% Loan	Omani Rials 4,000
Gross profit	Omani Rials 75,000
Purchases	Omani Rials 393,000
Opening inventory	Omani Rials 28,500
Share capital	Omani Rials 229,116

Additional information

• Assume that there are 360 days in a year.
• All purchases and sales are on credit
• Current assets includes inventory, trade receivables and Cash at bank
• Current liability include trade payables only

Required:

1. Calculate the following financial items of Al Hassan LLC for the year ended 30 September, 2019^.

1. Sales
2. Average Inventory
3. Closing inventory
4. Non-current Assets
5. Trade receivables
6. Trade Payables
7. Bank loan
8. Cash at bank

2. Prepare the Statement of profit or loss and other comprehensive income of Al Hassan LLC for the year ended 30 September 2019.

Prepare the Statement of financial position of Al Hassan LLC as at 30 September, 2019