solution

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

Balance sheet as at 31 March, 2019

Assets	2018 Save your time - order a paper! Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines Order Paper Now OMR	2019 OMR
Non-current assets
Land and building	381,000	427,000
Fixtures and fittings	129,000	160,000
	510,000	587,000
Current assets
Inventories	300,000	406,000
Account receivables	240,000	273,000
Cash at bank	4,000	0
	544,000	679,000
Total assets	1,054,000	1,266,000
Equity and liabilities
Equity
OMR 0.50 ordinary shares	300,000	300,000
General reserve	263,000	234,000
	563,000	534,000
Non-current liabilities
Long-term bank loan	200,000	300,000
Current liabilities
Account payables	261,000	354,000
Bank overdraft	30,000	78,000
	291,000	432,000
Total equity and liabilities	1,054,000	1,266,000

Income statement for the year ended 31 March, 2019

Notes:

The market value of the shares of the business at the end of the reporting period was OMR 2.50 for 2018 and OMR 1.50 for 2019.
All sales and purchases are made on credit.
The cost of goods sold figure can be analyzed as follows:

At 31 March 2017, the trade receivables stood at OMR 223,000 and the trade payables at OMR 183,000.
A dividend of OMR 40,000 had been paid to the shareholders in respect of each of the years.

Required:

Choose and calculate any four 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.
Compute the number of days in the cash conversion cycle for each year.
Did the company manage cash more effectively in the current year? Explain.