Instructions 1. This is a group project. Each group may consist of a maximum of 5 students. 2. Each group needs to appoint a group leader to communicate details about the group project and details of group members to the course tutor 3. The deadline for submitting the report is on 23" February 2022; the viva voce will be scheduled on 21 and 23 February 2022. 4. Check the Assessment Booklet for the report format and the rubrics used to evaluate the report and the presentation. 5. The distribution of marks is as follows a. Report 15 Marks b. Viva Voce Exam 5 Marks Question 1 Case Study: [7 Marks] Zain Trader is a sole trade that deals in merchandise. It provided the following information for the year ended 31 December 2015 to apply for a loan at Bank Muscat. The manager of Bank Muscat handed you over the responsibility to prepare a report about the financial position of Zain Traders. Based on your report the manager will decide to approve the loan. The manager has asked you to prepare your report based on the following ratios along with your comment on the same. [Your comment should compare the standard ratios and the Zain Traders ratios]. Cash Cost of Goods Sold $3,230 $2,390 Current Assets $1,000 Current Liabilities $3,500 Depreciation $800 Fixed Assets $8,600 Interest Payments $300 Inventory $2,010 Long-term Debt $3,000 Sales $5,000 a. Quick Ratio b. Current Ratio c. Profit Margin d. ROA e. ROE f. Debt Ratio g. D/E Ratio Calculation based on the information Comments comparing the Standard Ratio Quick Ratio Current Ratio Profit Margin Return on Asset Return on Equity Debt to Asset Ratio Debt to Equity Ratio Question 2: 18 Marks] Auditing plays an important role in any organization. Auditing and Accounting go hand in hand. As Accounting helps keep a complete record of the business activities, auditing helps in verifying those in line with that of law. Hence an audited financial report carries more weight and trust than that of an unaudited one. It helps in developing internal as well as external trust and value for the company, hence for that reason an audit report needs to be uninfluenced, unbiased and independent". Under the light of the above statement write short notes on various types of Audit Opinions, with the suitable example, in what condition or situation such audit opinions are given by the auditors. Question 3 [5 Marks] On December 31, 2016, the following ledger balances appeared on the book of Raze Inc. Account Receivables Account Payables Cash Bank overdraft Details $ 15,400 14,156 200 7.982 Provision for doubtful debts General Reserve 1 January 2015 4% Mortgage Loan 462 10,000 40,000 Provision for depreciation of non-current assets 12.500 Inventory Retained Profits 1 January 2015 Equity Non-current assets at cost 16,300 2,000 140,000 206,000 Additional information: a) The profit for the year ended December 31, 2016, before interest on Mortgage interest was $24,800. b) During the year ended December 31, 2016, a dividend of $14,000 was paid. c) On December 31, 2016, a whole year's interest on Mortgage was accrued. d) It was proposed to transfer $5000 to the general reserve. Required: a. Calculate the retained profit for the year ended December 31, 2016. b. Balance Sheet as of 31 December 2016. Note: Prepare the Balance Sheet in appropriate table