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QUESTION 3

The following information furnished by Al Ayham Manufacturing for measuring financial performance by calculating the ratios. The list of assets, equity and liability is given below: -

Assets	Amount (OMR)
Land and Building	500,000
Plant and Equipment	250,000
Furniture and Fitting	35,000
Inventories	200,000
Accounts and other receivables	55,000
Cash	20,000
Bank	50,000
Equity & Liabilities
Equity Share Capital	400,000
Bonds Payable	200,000
Accounts Payable	220,000
Outstanding expenses	20,000
Short term Bank borrowing	50,000

The list of Income statement items is given below: -

	Amount (OMR)
Sales	1,650,000
Cost of goods sold	500,000
General and Administrative Expenses	65,000
Selling and Marketing Expenses	35,000
Depreciation Expenses	40,000
Interest Expenses	30,000
Taxes	45,000

Additional Information:

1. Dividend paid by the company in the year 2020 is RO 12,000.
2. The face value of each share is RO 0.300.
3. The market price of shares at end 2020 is RO 0.500.

Requirement: You are required to calculate: - [5 Marks]

1. Earnings per share
2. Interest cover
3. Dividend cover
4. Price/Earnings ratio
5. Gross Profit Margin Ratio
6. Operating profit Ratio
7. Return on Assets.
8. Return on Working Capital Ratio
9. Current Ratio
10. Quick Ratio

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