Ruby Co. is a small company that manufactures and sells silk carpets in Abu Dhabi. The found of this company is Khaled Saeed, and he is in charge of the design and sale of the carpets, but his background is only in making silk carpets, not business. As a result, the company's financial records are not well maintained The initial investment in Ruby Co. was provided by Khaled and his family. Because the initial investment was relatively small, and the company has made carpets only for its own store, the investors haven't required detailed financial statements from Khaled. However, because the quality of the carpets is very good, sales of the carpets have increased rapidly in the recent months and Khaled 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 Khaled'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 Khaled to provide them with more organized and detailed financial statements than he has previously prepared. In order to do that, he hired a financial analyst, her name is Fatima (she holds a bachelor degree in finance from ADU University). He asked Fatima 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, Fatima has assembled the following information: NO SUS 224_190 33.373 61 TI 15 HUZI 57.220 279414 440123 20 26. 17 14 3 4873 Cost of poods sold Cash Depreciate Interest Selling & Administrativ Accele ed Sales Aconceivable Moters payable Leerderdele 66.246 Nepal 27. IST Ruby Co. currently pays out 50 percent of net income as dividends to Khaled and other original investors and has a 21 percent tax rate. You are working with Fatima, and she asked you to prepare the following: 1. Income statement for 2018 and 2019. (4 marks) 2.A balance sheet for 2018 and 2019. (4 marks) 3. Operating cash flow for 2018 and 2019. (2 marks) Cash flow from assets for 2019. (2 marks) Cash flow to creditors for 2019. (2 marks) Cash flow to stockholders for 2019. (2 marks) 7. After preparing all of these requirements, Fatima has asked you to describe cash flow for the company in 2019? Write your opinion. (2 marks) & Also, based on your analysis she asked you: what do you think about the expansion decision taken by Khaled? (1 marks) . Why is the interest paid is not a component of the operating cash flow? / marks) Ruby Co. is a small company that manufactures and sells silk carpets in Abu Dhabi. The found of this company is Khaled Saeed, and he is in charge of the design and sale of the carpets, but his background is only in making silk carpets, not business. As a result, the company's financial records are not well maintained The initial investment in Ruby Co. was provided by Khaled and his family. Because the initial investment was relatively small, and the company has made carpets only for its own store, the investors haven't required detailed financial statements from Khaled. However, because the quality of the carpets is very good, sales of the carpets have increased rapidly in the recent months and Khaled 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 Khaled'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 Khaled to provide them with more organized and detailed financial statements than he has previously prepared. In order to do that, he hired a financial analyst, her name is Fatima (she holds a bachelor degree in finance from ADU University). He asked Fatima 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, Fatima has assembled the following information: NO SUS 224_190 33.373 61 TI 15 HUZI 57.220 279414 440123 20 26. 17 14 3 4873 Cost of poods sold Cash Depreciate Interest Selling & Administrativ Accele ed Sales Aconceivable Moters payable Leerderdele 66.246 Nepal 27. IST Ruby Co. currently pays out 50 percent of net income as dividends to Khaled and other original investors and has a 21 percent tax rate. You are working with Fatima, and she asked you to prepare the following: 1. Income statement for 2018 and 2019. (4 marks) 2.A balance sheet for 2018 and 2019. (4 marks) 3. Operating cash flow for 2018 and 2019. (2 marks) Cash flow from assets for 2019. (2 marks) Cash flow to creditors for 2019. (2 marks) Cash flow to stockholders for 2019. (2 marks) 7. After preparing all of these requirements, Fatima has asked you to describe cash flow for the company in 2019? Write your opinion. (2 marks) & Also, based on your analysis she asked you: what do you think about the expansion decision taken by Khaled? (1 marks) . Why is the interest paid is not a component of the operating cash flow? / marks)