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 as a result 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 want to analyse 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.

  
 

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