Calculate the following ratios a. Liquid ratio.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
Calculate the following ratios a. Liquid ratio. 
AL AHLIA INSURANCE COMPANY SAOG
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the year ended 31 December 2020
2020
2019
Notes
RO
RO
Insurance premium revenue
Insurance premium ceded to reinsurers
19
21,272,026
(3,166,494)
24,881,678
19
(1,866,017)
Net insurance premium revenue
Commissions received on ceded reinsurance
Claims
Reinsurers' share of claims
Deferred acquisition cost
Commissions paid
19
18,105,532
194,326
(13,214,261)
6,687,417
(134,160)
(1,752,118)
23,015,661
128,795
(14,690,883)
3,114,572
12,322
(2,042,485)
20
20
8
Net underwriting result
General and administrative expenses
Investment income (net)
Interest on lease liabilities
Other income - net
9,886,736
(7,037,876)
2,090,707
(75,576)
325,849
9,537,982
(6,308,228)
1,726,244
(80,746)
1,203
22
21
33
Profit before taxation
5,189,840
4,876,455
Income tax
23
(800,000)
(765,000)
Profit and other comprehensive income for the year
4,389,840
4,111,455
Basic and diluted earnings per share
27
0.044
0.041
Transcribed Image Text:AL AHLIA INSURANCE COMPANY SAOG STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the year ended 31 December 2020 2020 2019 Notes RO RO Insurance premium revenue Insurance premium ceded to reinsurers 19 21,272,026 (3,166,494) 24,881,678 19 (1,866,017) Net insurance premium revenue Commissions received on ceded reinsurance Claims Reinsurers' share of claims Deferred acquisition cost Commissions paid 19 18,105,532 194,326 (13,214,261) 6,687,417 (134,160) (1,752,118) 23,015,661 128,795 (14,690,883) 3,114,572 12,322 (2,042,485) 20 20 8 Net underwriting result General and administrative expenses Investment income (net) Interest on lease liabilities Other income - net 9,886,736 (7,037,876) 2,090,707 (75,576) 325,849 9,537,982 (6,308,228) 1,726,244 (80,746) 1,203 22 21 33 Profit before taxation 5,189,840 4,876,455 Income tax 23 (800,000) (765,000) Profit and other comprehensive income for the year 4,389,840 4,111,455 Basic and diluted earnings per share 27 0.044 0.041
AL AHLIA INSURANCE COMPANY SAOG
STATEMENT OF FINANCIAL POSITION
At 31 December 2020
2020
RO
2019
Notes
RO
Assets
2,332,733
38,412,876
5,883,353
6,965,366
440,561
6,058,834
70,741
71,429
2,407,890
1,184,996
1,186,634
165,776
15,448,529
3,039,788
40,712,876
6,179,378
6,693,579
280,765
4,604,468
68,278
71,429
2,408,351
1,149,843
1,485,634
148,832
15,448,529
5
Cash and cash equivalents
Bank deposits
Premiums and insurance balances receivable
Reinsurers' share of outstanding claims
Reinsurers' share of unearned premium reserve
Other receivables and prepayments
Investments at fair value through profit or loss
Available-for-sale investments
Held-to-maturity investments
Property and equipment
Right of use assets
Deferred tax asset
6
7
20
17
8
11
33
23
Goodwill
12
Total assets
80,629,718
82,291,750
Equity and liabilities
Capital and reserves
Share capital
Legal reserve
Contingency reserve
10,000,000
3,909,423
10,000,000
113,876
15,763,591
10,000,000
3,909,423
10,000,000
114,596
15,473,031
13
14
15
Revaluation reserve
16
Retained earnings
Total equity
39,786,890
39,497,050
Liabilities
Liabilities arising from insurance contracts
Gross unearned premium reserve
Gross outstanding claims
10,774,725
23,442,679
17
8,588,703
22,984,039
20
31,572,742
1,092,187
5,896,380
1,122,332
1,159,187
34,217,404
926,646
4,125,592
1,407,042
2,118,016
Reinsurance balances payable
Other liabilities and accruals
18
Lease liabilities
33
Income tax payable
23
Total liabilities
40,842,828
42,794,700
Total equity and liabilities
80,629,718
82,291,750
Net assets per share
26
0.398
0.395
Transcribed Image Text:AL AHLIA INSURANCE COMPANY SAOG STATEMENT OF FINANCIAL POSITION At 31 December 2020 2020 RO 2019 Notes RO Assets 2,332,733 38,412,876 5,883,353 6,965,366 440,561 6,058,834 70,741 71,429 2,407,890 1,184,996 1,186,634 165,776 15,448,529 3,039,788 40,712,876 6,179,378 6,693,579 280,765 4,604,468 68,278 71,429 2,408,351 1,149,843 1,485,634 148,832 15,448,529 5 Cash and cash equivalents Bank deposits Premiums and insurance balances receivable Reinsurers' share of outstanding claims Reinsurers' share of unearned premium reserve Other receivables and prepayments Investments at fair value through profit or loss Available-for-sale investments Held-to-maturity investments Property and equipment Right of use assets Deferred tax asset 6 7 20 17 8 11 33 23 Goodwill 12 Total assets 80,629,718 82,291,750 Equity and liabilities Capital and reserves Share capital Legal reserve Contingency reserve 10,000,000 3,909,423 10,000,000 113,876 15,763,591 10,000,000 3,909,423 10,000,000 114,596 15,473,031 13 14 15 Revaluation reserve 16 Retained earnings Total equity 39,786,890 39,497,050 Liabilities Liabilities arising from insurance contracts Gross unearned premium reserve Gross outstanding claims 10,774,725 23,442,679 17 8,588,703 22,984,039 20 31,572,742 1,092,187 5,896,380 1,122,332 1,159,187 34,217,404 926,646 4,125,592 1,407,042 2,118,016 Reinsurance balances payable Other liabilities and accruals 18 Lease liabilities 33 Income tax payable 23 Total liabilities 40,842,828 42,794,700 Total equity and liabilities 80,629,718 82,291,750 Net assets per share 26 0.398 0.395
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Ratio Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education