Case Analysis:Al Ismail Fashions (AIF) is a garment company, located in Alkhwair Muscat, which consists primarily of much smaller garment makers. AIF was started 13 years ago by Ahmed and Salim, who has over 15 years of experience with a major garment manufacturer. And the partnership initially blended very well. Ahmed is extremely creative with a real talent for merchandising. Mainly because of his knowledge, the AIF is known for its quality and “in” fashions. Salim has contributed to merchandising and marketing ideas but has mainly assumed the duties of the firm’s chief operating officer. Ahmed has had little interest in the financial aspects of the company as he preferred to work on fashion designing and development of marketing strategies. A few months ago, however, he decided that he had better become more involved with the company’s financials. Ahmed wants to analyses the financial statement of the company to know the current financial performance and positions of the company. The following are the financial details of the AIF. Liabilities OMR Assets OMR Equity share capital 27,800 Furniture 4,000 Accounts Payable 1,550 Cash in hand 4,500 Reserves and surplus 2,550 Bills receivables 3,750 Bills payable 950 Land 9,000 Long term borrowings 6,520 Marketable securities 850 Outstanding Salaries 850 Cash in bank 5,250 Loan from Bank 3,450 Building 6,600 Preference share capital 5,265 Prepaid expenses 850 Bank overdraft 825 Cars & Trucks 3,350 Tax outstanding 590 Account Receivables 1,150 Inventory 2,150 Income earned but not received 430 Machinery 6,250 Equipment 2,220 Total 50,350 Total 50,350 Other information Particulars OMR Sales 330,000 Cost of goods sold 155,000 Administration expenses 33,000 Selling & Distribution exp. 44,000 Interest received 12,200 Rent Received 2,000 Commission received 1,750 As a Finance Manager of the company, you are required to: Calculate the following ratios: D- Return on Equity E- Gross Profit & Net Profit Margin F- Give a brief report on the financial position of the company based on the above figures.

Case Analysis: Al Ismail Fashions (AIF) is a garment company, located in Alkhwair Muscat, which consists primarily of much smaller garment makers. AIF was started 13 years ago by Ahmed and Salim, who...

Case Analysis:

Al Ismail Fashions (AIF) is a garment company, located in Alkhwair Muscat, which consists primarily of much smaller garment makers. AIF was started 13 years ago by Ahmed and Salim, who has over 15 years of experience with a major garment manufacturer. And the partnership initially blended very well. Ahmed is extremely creative with a real talent for merchandising. Mainly because of his knowledge, the AIF is known for its quality and “in” fashions. Salim has contributed to merchandising and marketing ideas but has mainly assumed the duties of the firm’s chief operating officer. Ahmed has had little interest in the financial aspects of the company as he preferred to work on fashion designing and development of marketing strategies. A few months ago, however, he decided that he had better become more involved with the company’s financials. Ahmed wants to analyses the financial statement of the company to know the current financial performance and positions of the company. The following are the financial details of the AIF.

Liabilities	OMR	Assets	OMR
Equity share capital	27,800	Furniture	4,000
Accounts Payable	1,550	Cash in hand	4,500
Reserves and surplus	2,550	Bills receivables	3,750
Bills payable	950	Land	9,000
Long term borrowings	6,520	Marketable securities	850
Outstanding Salaries	850	Cash in bank	5,250
Loan from Bank	3,450	Building	6,600
Preference share capital	5,265	Prepaid expenses	850
Bank overdraft	825	Cars & Trucks	3,350
Tax outstanding	590	Account Receivables	1,150
		Inventory	2,150
		Income earned but not received	430
		Machinery	6,250
		Equipment	2,220
Total	50,350	Total	50,350

Other information
Particulars	OMR
Sales	330,000
Cost of goods sold	155,000
Administration expenses	33,000
Selling & Distribution exp.	44,000
Interest received	12,200
Rent Received	2,000
Commission received	1,750

As a Finance Manager of the company, you are required to:

Calculate the following ratios:

D- Return on Equity

E- Gross Profit & Net Profit Margin

F- Give a brief report on the financial position of the company based on the above figures.

Jun 04, 2022

SOLUTION.PDF

Case Analysis: Al Ismail Fashions (AIF) is a garment company, located in Alkhwair Muscat, which consists primarily of much smaller garment makers. AIF was started 13 years ago by Ahmed and Salim, who...

Get Answer To This Question

Related Questions & Answers

Submit New Assignment