SECTION D: NUMERICAL ANALYSIS QUESTION

Q1. From the following information provided below, you are required to

(A) Horizontal analysis of the balance sheets

(B) Vertical analysis of the balance sheets as at 31^st December

(C) Common size analysis of the income statement for the year ended 31^st December, 2014

Sheikha Ltd

Balance sheet as at 31^st December 2014 and 2013

Assets	2014	2013
Current Assets	OMR	OMR
Cash	900,000	410,000
Temporary Investments	500,000	360,000
Accounts Receivable	950,000	450,000
Inventories	450,000	280,000
Prepaid Expenses	100,000	100,000
Total Current Assets	2,900,000	1,600,000
Long Term Investments	900,000	400,000
Property Plant and Equipment	2,100,000	1,500,000
Intangible Assets	600,000	500,000
Total Assets	6,500,000	4,000,000
Liabilities	OMR	OMR
Current Liabilities	1,300,000	800,000
Long Term Liabilities	1,804,000	700,000
Total Liabilities	3,104,000	1,500,000
Stockholders' Equity
9 % Preference Stock, OMR 100 par	400,000	400,000
Common Stock, OMR 10 par	2,000,000	1,200,000
Retained Earnings	996,000	900,000
Total Stock Holders Equity	3,396,000	2,500,000
Total Liabilities and Stock Holders Equity	6,500,000	4,000,000

Income Statement
For the year ending December 31st , 2014 and 2013
Particulars			2014	2013
			OMR	OMR
Sales			1,550,000	1,020,000
Less: Sales Return			50,000	20,000
Net Sales Revenue			1,500,000	1,000,000
Cost of Goods Sold			850,000	600,000
Gross Profit			650,000	400,000
Selling Expenses			150,000	120,000
Administrative Expenses			170,000	140,000
Total Operating Expenses			320,000	260,000
Income from Operations			330,000	140,000
Other Income			45,000	25,000
			375,000	165,000
Other Expenses (Interest)			9,000	5,000
Income Before Income tax			366,000	160,000
Income Tax Expense			46,000	16,000
Net Income (A-B)			320,000	144,000