Accounting question

1. The following financial statements relate to Al-Husan Company, which operates a wholesale carpet business:


A. Choose and calculate eight ratios that would be helpful in assessing the performance of Al- Husan Company. Use end-of-year values and calculate ratios for both 2018 and 2019. (8 marks)

B. Using the ratios calculated in (A) and any others you consider helpful, comment on the company’s performance. (2 marks)

C. Compute the number of days in the cash conversion cycle for each year. (4 marks)

D. Did the company manage cash more effectively in the current year? Explain. (1 mark)

2. Shams company is considering two projects. Each requires an initial investment of OMR 100,000. The company cost of capital is 14%. The cash inflows associated with each project are as follows:

a. Calculate the NPV for each project. (2 marks)

b. Which project you would recommend to the management. Explain why. (1 marks)

3. Write a short note about one of the current trends and issues in finance. (2 marks)



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