Question:

The following attachments are the financial statements of two companies listed in Amman Stock Exchange (ASE) for the years of 2017 to 2019.

Requirements:

a.Compute the following ratios for both companies:

i. Working capital

ii. Current ratio

iii. Acid test ratio

iv. Cash flow from operations to current liabilities

v. Accounts receivable turnover ratio

vi. Days in receivables

vii. Inventory turnover ratio

viii. Average days in inventory

b.Based on the previous ratios discuss the working capital management and assess the relative working capital position for both companies.

Assis CD 2019 ZON 2017 194 7152906 3145990 4716657 4500 4362576 0 0 o 0 Theo 514 6073003 . 0 129985 1462 o 0 811003 4709722 5767461 134675 234635 234.35 1356 196732 241) 4221 5141039 25000 1304158 319.3723107131 29000 2367676 2399807 Cash & Banks Accounts Receivable Na Notes Receivable Post Dated Cheques Short Term Investments Ivety Spare Parts Total Current Assets Long Term Invester Fixed Assets Lande Projects in Progress Tocal Fixed Asset Other A Total Ass Tamil (HD) Accounts and Neste Credit Banks Short Term Loan Accrued Prof Long Term Led Total Current Liabilities Long Term Lamm & Notes hic Corporate Bands Xher Liabilities | Tosa Lils Shareholders LCD Authored Capital Suscribed Capital Paid in Capital Compuliary Reserves Voluntary Reserve Other Rene Purchase of controlling steres idees base Premium e Disco Treasury Stock Cash Dividends Sock Dividende Accumulated Change in Fair Value Retained Earning Total Sharchoquity Non-coding Total abilities & Soldiers Equity Income Statem CD 2019 2017 122916 3590 0 0 9 0 0 0 99219 53897 399714 0 0 19376762400197 22991 2075973 25.40681 15000000 15000 15000000 19000000 1000000 15000000 SC00000 15000000 15000000 59804 5721872 $393110 0 0 . 0 0 0 0 0 0 0 0 0 10000 o 0 . 0 0 44 3569601 636010 25451345 34291473 20791 23000 2676740 23919907 9124141 511476 1995 15167 Operating Reven Operating Experies Gross Profit General and Administre Selling and Distribution Expres Depreciation (Period Other Operating Expo Net Operational Income Other Revers Cherpes Income Before Isles & Tas Interest le Net Income Before Tax Income Tax period Income Tax Previous Yeme) Iniversities and catch Tram Fox Board of Director Rent Net Income Non- cling Net Income Portains to Sharebeldes 19 KORS 45 1505019 1754819 9 1325199 0 175000 SO 70000 2010 0 2010 13262.39 . 247350 114976 300000 312255 2017 1315123 455932 -3244259 1391147 0 1217009 0 -635-40 $76-018 443869 685743 0 685743 372355 75211 0 0 15000 21 . 3500 33137 0 0 35000 645877 0 645877 3212347 Carbalancelling) Net Cash How to Used in penting Net Cash Flow from the investing Activities Net Cash Flow from time in Facing Activ Cash Balceding 2019 2018 71590 1945900 12 16:54 2517621643262 71436 105343 -1277418 -6000000 11:45 78394 AUD 123019 20K 5125 5471 141 9612 2491600 o 45570 257272 27 0 1919 770 1959124 2 7900 1979 4877614 387213 676 99870 0 14 63 195 sode 2861901 29095155 256 2019 2019 151855 2018 1191 0 0 315 189425 0 0 19611 3910RSE 23811 3183735 0 0 S555 3 Caso de Banks Accounts Receivable Net Notes Receivable Po Duled Cheques Short Term Investments Inventy Spare Parts Toul Camen Ac Long Term Investments wed Assets Net Landa Projects in open Total Fixed Assets Other Assets Tel As Liabilities CDI Accounts and Nee Payable Credit Bank Short Term Loan Accrued to Long Term Loom Total Current Liabili Long Term Loan & Notes Poble Corporate Bonda Other Liabilities Total Lilities Sharvholder gutty CD Authorized Capital Subscribed Capital Paldin Capital Compulsory Reserve Voluntary Reserve Other Reserves Icelom Issue Discount Treasury Stacks Cash Dividends Stock Dividende Accumulated Change Par Value Retained Gaming Toral Shareholders Equity Non- cling Intere Total Lab Shawholders Iquity Incense Statement UDI Operating Revers Operating Expenses Gros Profit General and Administrative Expenses Selling and stribution lipers Depreciate Period Other Operating Expenses Net Operating Income Other Reven Other Lispers lacone Before Interest Tax Interest Expens Net Income Before Tax Income Tax (Period Income Tax Previous Year L'niversities and Research Train Fors Board of Directors munities Net Now- colling Interest Net Inces Pertinet Sharchulden 2019 2018 2013 1000000000 1000000 100000000000000 10000 ODOBO OD 1 SH 5791 2155018 2155018 2150 0 0 0 0 0 0 . 2000000 13 . 1094547 3501159 317 37547 314676 47200 240716329914235 25754 0 0 2011 2019 11699194 04106 3050019 1219 1001834 $299341 15015 1352136 95540 234653 2017 TH 505 2921935 S094568 373702 NA 150 917523 999 112 75 31335 2009 79912 19341 . 191566 0 0 BOK 239932 2009 242145 0 0 31654 HOK 2195 17 2019 53708 2018 3436403 -540470 Cash Balance (Beginning) Net Cash Flow from (Uned in Operating Activities Net Cash Flow from Und investing Activities Net Cash Flow to Used in Financing Activities Cash Balance (inding . 27667 -1000 3436003 537065 Assets (JD) Cash on Hand & at Banks Accounts Receivable Net Notes Receivable Post Dated Cheques Short Term Investments Inventory Spare Parts Total Current Assets Long Term Investments Fixed Assets Net Lands Projects in Progress Total Fixed Assets Other Assets Total Assets Liabilities (JD) 2019 2018 2017 2766769 537065 3436403 2491603 3473663 1961202 0 0 0 455782 22159 4924 0 0 0 3425530 2857272 2746000 0 0 0 9837037 7784084 8959174 11886972 14799040 13195988 4877614 5387213 6768383 948870 948870 0 872830 23902 0 6699314 6359985 6768383 195692 155046 39111 28619015 29098155 28962656 Accounts and Notes Payable Credit Banks Short Term Loans Accrued Part of Long Term Loans Total Current Liabilities Long Term Loans & Notes Payable Corporate Bonds Other Liabilities Total Liabilities Shareholders Equity (JD) 2019 2018 2017 1518575 1191928 910586 0 0 0 0 0 0 0 0 0 3894235 3159909 3142654 0 0 0 0 0 17617 23811 55554 3911852 3183720 3198208 Authorized Capital Subscribed Capital Paid in Capital Compulsory Reserves Voluntary Reserve Other Reserves Issuance Premium Issuance Discount Treasury Stocks Cash Dividends 2019 2018 2017 10000000 10000000 10000000 10000000 10000000 10000000 10000000 10000000 10000000 6261251 5914384 5792126 2155018 2155018 2155018 0 0 0 0 0 0 0 0 0 0 0 0 2000000 1200000 1200000 0 Stock Dividends Accumulated Change in Fair Value Retained Earnings Total Shareholders Equity Non-controlling Interest Total Liabilities & Shareholders Equity Income Statement (JD) 0 0 0 1094547 3501357 3179602 3196347 3143676 3437702 24707163 25914435 25764448 0 0 0 28619015 29098155 28962656 Operating Revenues Operating Expenses Gross Profit General and Administrative Expenses Selling and Distribution Expenses Depreciation (Period) Other Operating Expenses Net Operating Income Other Revenues Other Expenses Income Before Interest & Tax Interest Expenses Net Income Before Tax Income Tax (Period) Income Tax (Previous Years) Universities and Research Train Fees Board of Directors Remuniration Net Income Non-controlling Interest Net Income Pertains to Shareholders Cash Flow (JD) 2019 2018 2017 11699191 10245026 8831190 6401950 6989007 5094168 5297241 3256019 3737022 1508145 1170094 816864 1352626 1262194 1530408 955479 1001824 917532 224623 288832 59942 2211847 534899 1329808 764364 769912 754609 54275 50577 31326 2921936 1254234 2053091 0 0 0 2921936 1254234 2053091 491565 194348 242745 0 0 0 0 0 0 30833 31654 30821 2399538 1028232 1779525 0 0 0 2399538 1028232 1779525 Cash Balance (Beginning) Net Cash Flow from (Used in) Operating Activities Net Cash Flow from (Used in) Investing Activities Net Cash Flow from (Used in) Financing Activities Cash Balance (Ending) 2019 537065 3150850 -26229 -894917 2766769 2018 2017 3436403 3126026 -840470 1566999 -1150444 -252902 -908424 -1003720 537065 3436403