1. Raheem SAOG is involved in the manufacture of poultry products. It provides you the following details, you are required to prepare a Statement of Financial Performance clearly showing: 1. Net sales 2. Cost of Goods sold, 3. Gross profit, 4. Net income before interest and Tax, 5. Net income after interest and tax (7 marks)

Particulars	Amount(OMR)
Profit on sale of furniture	200
Expenses for manufacturing	5000
Stock on 31.12.2018	4500
Discount Allowed	350
Return inwards	2000
Delivery van expenses	3200
Bad debts	700
Miscellaneous Expenses	640
Carriage on Purchases	1200
Supervisor's Salary	650
salesmen Salary	1300
Rent(Cr.)	3480
Sales	128,000
Purchases	113,000
Purchase Returns	3000
Tax	20%
Stock on1.1.2018	6200

After calculating the net income, consider the following information.

Raheem SAOG has in issue 150,000 Equity shares having a par value of 0.100 baiza was issued at a premium of OMR 1.2.

In the beginning of the year, the company has taken a loan of 40,000 from Bank Sohar at 12% interest rate.

A. Comment and show how the net income of the company will be affected if :( 1.5 marks)

a. What will be effect on the net income or loss due to the Loan?

b. Is it possible for the company to declare dividend from the current year profits? Explain

B. How will you show the Loan and Equity Share capital in the Statement of Financial Position (1.5 marks)