You have been provided Income Statement and Financial Position Statement of Oman Cement Company SAOG for the year 2018 and 2019.  You are required to evaluate the Working Capital position of this company for the year 2018 and 2019 based on following calculations:   Liquidity position of the company (current ratio and quick ratio). What is your view about status of liquidity position of Oman Cement Company?

Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter17: Financial Statement Analysis
Section: Chapter Questions
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You have been provided Income Statement and Financial Position Statement of Oman Cement Company SAOG for the year 2018 and 2019.  You are required to evaluate the Working Capital position of this company for the year 2018 and 2019 based on following calculations:

 

  • Liquidity position of the company (current ratio and quick ratio). What is your view about status of liquidity position of Oman Cement Company?

 

  • Cash Operating Cycle in a tabular form (as shown in ppt slide number 10 of working capital management) and present Cash Operating Cycle in a diagram for both years separately (as shown in class ppt slide number 9 of working capital management). ?

 

 

  • Based on the above calculation, give your overall view on working capital situation of Oman Cement Company between the year 2018 and 2019. What are your suggestions to Oman Cement Company for strengthening Working Capital Management?                   

                                                               

Discuss some of the factors that could impact the working capital management of Oman Cement Company SAOG?                               

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