All questions required to be answer specifically are attached in the document. the course work should follow harvard referencing if possible and appicable.
coursework_2_of_process_plant_optimization_and_economics_2018_19_sem_a.pdf

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Question 1.
Understanding Financial Statements & Ratio Analysis Dhofar Poultry Company SAOG
Calculate the following accounting Ratios of Dhofar Poultry Company SAOG for years 2017
and 2016 and write your comments on company’s performance in year 2017 compared to year
2016. Use below format
Ratio
Gross Profit Ratio
2017
25%
2016
Comments
20% Ratio is improved due to increased Profit and profit is increased due increased sales and decrease in expenses
Use following formulas to calculate Ratios
1. Gross Profit Ratio
Gross
Profit/Salesx100
2. Net Profit Ratio Net
profit/SalesX100
3. Return on capital Employed
Net profit/Equity X100
4. Current Ratio
Current Asset/Current liabilities
5. Quick ratio
Current Asset-Stock/Current liabilities
6. Stock turnover days
Stock/Cost of Goods Sold*365
7. Debtors Collection period
Receivables/sales X 365
8. Payment period
Payable/Cost of Sales X 365
Please download Dhofar Poultry Company SAOG audited financials (Comprehensive income statement
and Statement of Financial Position 2017 (Balance sheet) from Muscat Security Market (MSM) website.
following is the link.
https://www.msm2.gov.om/
Either click on the link or copy & past to your browser
Please note files to download
Please select the file “Audited Financial Statement for year 2017”, English version
1. DPC comprehensive income 17.pdf
2. DPC Financial position17.pdf
Please answer following questions from Audited Financial of Dhofar Poultry Company SAOG
1. In 2017, what is the total resources of the Company (Total Assets) and how is it is
financed from owners and outsiders ?
2. In 2017, Balance sheet (statement of Financial Position) shows accumulated loss of RO
811,364. What it means?
3. How much is the Total loan amount payable to bank for the year 2017 (include short
term payable and long term payable)
4. Write your comments on company’s Financial results and Financial Position for the year
2017 as compared to year 2016
Question 2.
Following balances were extracted from Salam LLC books of Accounts as at December 2016.
Assume this is the First accounting year of the company.
Account head
Capital
Cash
Payables
Dr
Cr
RO
RO

28,000
45,300


61,600
Motor Vehicle
21,500
Receivables
38,500
Bank loan
62,500
Office expenses
1,000
Printing and Stationery
1,250
Vehicle expenses
750
Repairs and Maintenance
695
Insurance
275
Advertisement
725
Bad debts
Function expenses
Building
Purchases
Employee cost

1,500
765
96,000

115,400

22,500
Interest expenses
3,550
Utility Expense
3,500
Sales
Total

201,110
353,210
353,210
Assume depreciation to building @ 10% per annum and Motor Vehicle 15%. Provide Income tax @
12% after RO 30,000 basic exemption limit
Prepare Salam LLC’s
1.
Income statement
2. Balance sheet (statement financial position)
Sample Question and Answer on Income statement and Balance sheet
Following balances were extracted from Marhaba LLC books of accounts as at December 2017.
Assume this is the First accounting year of the company.
Account head
Capital
Cash
Payables
Dr
Cr
RO
RO

22,000
92,300


60,600
Motor Vehicle
20,500
Receivables
28,500
Bank loan
61,500
Office expenses
2,000
Printing and Stationery
1,350
Vehicle expenses
850
Repairs and Maintenance
685
Insurance
175
Advertisement
825
Bad debts
Function expenses
Building
Purchases
Employee cost

1,400
565
86,000

125,400

21,500
Interest expenses
2,550
Utility Expense
1,500
Sales
Total

242,000
386,100
386,100
Assume depreciation to building @ 15% per annum and Motor Vehicle 10%. Provide Income tax @
12% after RO 30,000 basic exemption limit
Prepare Marhaba LLC’s
1.
Income statement
2. Balance sheet (statement financial position)
Answer to Sample Question
Profit and loss Statement as on 31st
December 2017 Marhaba LLC
Sales
Less: purchase
Gross profit
Less: Expenses
Office expenses
Printing and Stationery
Vehicle expenses
Repairs and Maintenance
Insurance
Advertisement
Bad debts
Function expenses
Employee cost
Interest expenses
Utility Expense
Total Expenses
Net profit before Tax and depreciation
Depreciation Building
Depreciation Motor Vehicle
Net Profit after Depreciation
Less Income Tax (71,550-30000)*12%
Profit After Tax
242,000
125,400
116,600
2,000
1,350
850
685
175
825
1,400
565
21,500
2,550
1,500
33,400
83,200
12,900
2,050
68,250
4590
63,660
Balance sheet as at 31st December 2017 marhaba LLC
Fixed assets
Building ( after depreciation)
Motor Vehicle (after depreciation)
Total Fixed Assets
Current assets
Receivables
Cash
Total Current Assets
Total Assets
current liabilities
Payables
Tax payable
Bank Loan
Total Current Liabilities
Capital
Net profit for the year
Total Liabilities and Equity
73,100
18,450
91,550
28,500
92,300
120,800
212,350
60,600
4,590
61,500
126,690
22,000
63,660
212,350

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