Case Analysis: 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 have 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. Other information Particulars OMR Sales 330,000 Cost of goods sold 155,000 Administration expenses 33,000 Selling & Distribution exp. 44,000 Interest received 12,200 Rent Received 2,000 Commission received 1,750 Calculate 1- Gross profit 2- Net profit
Case Analysis:
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 have 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.
|
Other information |
|
|
Particulars |
OMR |
|
Sales |
330,000 |
|
Cost of goods sold |
155,000 |
|
Administration expenses |
33,000 |
|
Selling & Distribution exp. |
44,000 |
|
Interest received |
12,200 |
|
Rent Received |
2,000 |
|
Commission received |
1,750 |
Calculate
- 1- Gross profit
- 2- Net profit
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