Assume you are a newly appointed accountant in a local fashion Company named Al Rahim clothing Company based in Oman. Currently, the Company has five different departments include Accounting and Finance, Marketing, Human Resources, Information Technology and Sales & Distribution. Managers in each department are given the authority regarding operational decisions, and their performance is measured on the Company’s profit, and all the other employees receive the fixed salary package. You have been asked to answer the following tasks in preparation for the assignment that you will perform internally for the Company. a. As an accountant of the Al Rahim clothing Company, prepare a report of the Income Statement and Balance Sheet. b. Compute the Company's key financial ratios for the evaluation of Profitability and Liquidity. c. Analyze and interpret the Company's financial performance based on the ratios prepared
Question
Assume you are a newly appointed accountant in a local fashion Company named Al Rahim clothing Company based in Oman. Currently, the Company has five different departments include Accounting and Finance, Marketing, Human Resources, Information Technology and Sales & Distribution. Managers in each department are given the authority regarding operational decisions, and their performance is measured on the Company’s profit, and all the other employees receive the fixed salary package. You have been asked to answer the following tasks in preparation for the assignment that you will perform internally for the Company.
a. As an accountant of the Al Rahim clothing Company, prepare a report of the Income Statement and
b. Compute the Company's key financial ratios for the evaluation of Profitability and Liquidity.
c. Analyze and interpret the Company's financial performance based on the ratios prepared.
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