# Financial Statement Analysis

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## Description

Step -1: Choose any one company

Example: Raysut Cements and get its published financial statement for the financial period 2017-2018 from the Muscat Securities Market (MSM) Website (https://www.msm.gov.om/), where you find "Financial Reports" icon at the bottom of screen.

Step -2: Using the financial report answer the following questions:

1. Brief introduction about the company? ( 1 Mark )

2. List various items (only account heads, no need for figures) appear under the following categories: (1.5 Marks)

Company Name :

No. of Employees :

Established :

No. of Omani Employees :

Principle activities :

No. of Non - Omani Employees :

Branches :

Category

List of Assets List of Liabilities Owners' Equity List of Revenues List of Expenses

Account Names

a) b) c) d) e)

3. Develop a basic “accounting equation” (Assets= Liability + Owner’s Equity) for the year 2017 & 2018. (1 mark)

4. Calculate "Net Profit" of the company for the year 2017 & 2018 by using the "Simple Income Statement" format which you learned in the class? (1.5 Mark)

Page | 1

4. "Company’s net income appears directly on the income statement and the owner’s equity statements, and it is included indirectly in the company’s balance sheet". Do you agree? Explain how the net income is shown in Balance Sheet. ( 1.5 Marks )

5. What is a total assets value of the company during 2017 and 2018? Provide calculation ( 1.5 Mark )

6. What is a total Liability value of the company during 2017 and 2018? Provide calculation ( 1.5 Mark )

7. What is a total Owner’s Equity value of the company during 2017 and 2018? Provide calculation ( 1 Mark )

8. What is the accounting period of the company? ( 1/2 Mark )

9. Which method (periodic or perpetual) the company has used to calculate the Cost of Inventory? Explain briefly.

(if the company is service organization, then explain both methods briefly) (1 Mark)

Important Instructions:

 It is an individual assignment.

 Total marks: 15 (12 marks for report & 3 marks for interview/ viva-voce by teacher).

 Better to choose Manufacturing Company rather than servicing company.

 Attach the copy of the "Financial Reports" (Income Statement & Balance Sheet) along

 Hand written Assignments are preferable.

 Register name and company which you have chosen for assignment with your teacher

during week 3, same company cannot be taken by more than one student.

All the best!!!

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MINISTRY OF HIGHER EDUCATION COLLEGE OF APPLIED SCIENCES NIZWA DEPARTEMNT of BUSINESS ADMINISTRATION Financial Accounting -1 (BSDR1004)) Spring 2019 Assignment-2 - Financial Statement Analysis (15 marks) Students' Guide Step -1: Choose any one company from Sultanate of Oman Example: Raysut Cements and get its published financial statement for the financial period 2017-2018 from the Muscat Securities Market (MSM) Website (https://www.msm.gov.om/), where you find "Financial Reports" icon at the bottom of screen. Step -2: Using the financial report answer the following questions: 1. Brief introduction about the company? ( 1 Mark ) Company Name : No. of Employees : Established : No. of Omani Employees : Principle activities : No. of Non - Omani Employees : Branches : Head office Location: 2. List various items (only account heads, no need for figures) appear under the following categories: (1.5 Marks) Category a) List of Assets b) List of Liabilities c) Owners' Equity d) List of Revenues e) List of Expenses Account Names Page | 1 3. Develop a basic “accounting equation” (Assets= Liability + Owner’s Equity) for the year 2017 & 2018. (1 mark) 4. Calculate "Net Profit" of the company for the year 2017 & 2018 by using the "Simple Income Statement" format which you learned in the class? (1.5 Mark) 4. "Company’s net income appears directly on the income statement and the owner’s equity statements, and it is included indirectly in the company’s balance sheet". Do you agree? Explain how the net income is shown in Balance Sheet. ( 1.5 Marks ) 5. What is a total assets value of the company during 2017 and 2018? Provide calculation ( 1.5 Mark ) 6. What is a total Liability value of the company during 2017 and 2018? Provide calculation ( 1.5 Mark ) 7. What is a total Owner’s Equity value of the company during 2017 and 2018? Provide calculation ( 1 Mark ) 8. What is the accounting period of the company? ( 1/2 Mark ) 9. Which method (periodic or perpetual) the company has used to calculate the Cost of Inventory? Explain briefly. (if the company is service organization, then explain both methods briefly) (1 Mark) Important Instructions: ▪ It is an individual assignment. ▪ Total marks: 15 (12 marks for report & 3 marks for interview/ viva-voce by teacher). ▪ Better to choose Manufacturing Company rather than servicing company. ▪ Attach the copy of the "Financial Reports" (Income Statement & Balance Sheet) along with your completed assignment. ▪ Hand written Assignments are preferable. ▪ Register name and company which you have chosen for assignment with your teacher during week 3, same company cannot be taken by more than one student. All the best!!! Page | 2
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Attached.

Analysis of Financial Statement
1. Brief introduction about the company? (1 Mark)
Company Name: Oman Chromite
Established: July 01, 1991
Principle activities: Mining and exporting
chrome ore.

Branches: 1

No. of Employees: 57
No. of Omani Employees: 46

No. of Non - Omani Employees: 11
Head office Location: Al Hmbar, Sohar

2. List various items (only account heads, no need for figures) appear under the following
categories: (1.5 Marks)
CATEGORY

ACCOUNT NAMES

A)

LIST OF ASSETS

Non-current assets:
Plant and Equipment
Intangible assets
Deferred tax asset
Current Assets:
Inventories,
Cash and bank balances,
Financial assets at fair value

B)

LIST OF
LIABILITIES

C)

OWNERS' EQUITY

D)

LIST OF REVENUES

Non-current Liabilities:
Employee terminal benefits
Current liabilities:
Bank borrowings
Share Capital
Legal reserve
Retained earnings
Revenue from Contracts with customers

E)

LIST OF EXPENSES

Selling and Distribution expenses
Salaries and other staff costs
Finance costs

Page | 1

3. Develop a basic “accounting equation” (Assets= Liability + Owner’s Equity) for the year
2017 & 2018. (1 mark)
2017: 4,466,214 = 269,342 + 4,196,872
2018: 4,544,687 = 364,161 + 4,180,526
4. Calculate "Net Profit" of the company for the year 2017 & 2018 by using the "Simple
Income Statement" format which you learned in the class? (1.5 Mark)
A’SAFFA FOODS SAOG
Income Statement
For the Years Ending 31 December, 2017 and 2018
2018

2017

Revenue

1,835,364

2,074,171

Cost of Revenue

(631,518)

(647,610)

Gross Profit

1,203,846

1,426,561

Total Expenses

(733,579)

(805,000)

470,267

621,561

Net Profit

4.

"Company’s net income appears directly on the income statement and the owner’s equity
statements, and it is included indirectly in the company’s balance sheet". Do you agree?
Explain how the net income is shown in Balance Sheet. (1.5 Marks)
Yes, I agree. The net income of a company appears directly on the income statement when
the total expenses are subtracted from the revenues. The statement of owner’s equity
directly includes the net income as a positive value. Net Income is indirectly included in
a balance sheet. This is because the balance sheet outlines the assets, liabilities, and
owner’s equity at the specified accounting date and because the value of owner’s equity
incorporates the value of the company’s net income, the net income will be indirectly
reported on the statement of financial position.

5.

What is a total assets value of the company during 2017 and 2018? Provide calculation
(1.5 Mark) A=L+ E
Total assets value = Total Liabilities + Owners’ Equity
2017: Total assets value:
Page | 2

4,466,214 = 269,342 + 4,196,872
For 2018: Total assets value:
4,544,687 = 364,161 + 4,180,526
6.

What is a total Liability value of the company during 2017 and 2018? Provide calculation
(1.5 Mark)
Total liability value = Total value of Assets – Total value of owners’ equity
2017: Tot...

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