Red Rose is a small company that manufactures and sells silk carpets in Abu Dhabi. Hamdan, the founder of the company, oversees the design and sale of the carpets, but his background is only in making carpets, not business. As a result, the company's financial records are not well maintained.

The initial investment in Red Rose was provided by Hamda and his family. Because the initial investment was relatively small, and the company has made carpets only for its own store, the investors have not required detailed financial statements from Hamdan. However, because the quality of the carpets is very good, sales of the carpets have increased rapidly in the recent months and Hamdan is considering a major expansion. His plans include opening another store in Dubai, as well as selling his carpets to other customers in Saudi Arabia.

Hamdan's expansion plans require a significant investment, which he plans to finance with a combination of additional funds from outsiders plus some money borrowed from banks. The new investors and banks require Hamdan to provide them with more organized and detailed financial statements than he has previously prepared. To do that, Hamdan has hired a financial analyst, her name is Maryam. He asked Maryam to evaluate the performance of the company over the past year. After going through all the bank statements, sales receipts, tax returns, and other records, Maryam has assembled the following information: