Sheikha Fashion Store is a Corporation with a focus on Clothing/Textile manufacturing in the UAE. Sheikha Fashion needs to be evaluated by an investment analyst in order to qualify for future finances from the bank. You are the investment analyst whose required to evaluate Sheikha Fashion store on three of the five parameters given below and explain in detail, which area of the business is strong or weak using the ratios you think will fit. a. Liquidity b. Capital Structure c. Asset Management Efficiency d. Profitability and e. Market Value Ratios [6 marks] You can pick any three areas of the business mentioned above and conduct your analysis. Ratio selection is your choice as well but remember the more ratios you choose in each business area.the better. You are also required to write down a detailed recommendation/or suggestion for Sheikha Fashion, and how they can improve in future. [4 marks] Sheikha Fashion currently has 1.5 billion shares outstanding with the dividend announced for the current year (2019) at AED 25 million and last year (2018) the dividend announced was at AED 32 million for the entire group. The opening share price of Sheikha Fashion on 30th December 2020 was AED 2,514 and AED3,104.8 on 30th December 2019. Normal No Spacing o soncha Heading 1 Heading Unit Arab Emirates University UAEUS and commis Case Study Combined statement of profit or low and other comprehensive income for the year ended December 31, 2013 Al figures are expressed in UAE Dirham Note 2019 2018 Revenue 58.221.00 17,078,112 Cost of sales 152,387,617) 179.526.491 Gross profil 5.234 261 8,351,753 Salary and benefits 17.157 120 1123 Rent (161,721) 1270,0403 Administrative anses 1261,014 0339.000 Amortisation of interes 12 1451.500) 1451,500 Depreciation 6 (44621) 141.42) Baddebits d 1306.01) Allowance for impairment of inventory 21,564) Operating profit 4.131 6.100.213 Other in 10 1.758.828 1,773.961 Finance income 11 M Finance cost 11 1144846 211,671) Total.comprehensive income for the year 5.873 189 TOT 114 The combined financial statements en pass to 33 are approved on December 21, 2020 and signed on behalf of the Directory: 0 MacBook Air og DI DD F4 59 FG F7 FB 21 ABCDE ABCODE Oo AaBbCcDc Acco Heading Normal No Spacing United Arab Emirati venity College of Buses Case Study Combined statement of financial positions at December 31, 2015 Al figures are expressed in UAE Dirhams Note 2019 2018 ASSETS Non-currentes Property, plant and equipment Intangible assets Total non-current assets 6 12 233,142 75,334 451.500 524,014 239,142 Current assets Inventories Trade and other receivables Cash and bank balances Total current assets Totales 13 18 15 0 29,784,379 9,041,147 38,826,125 39,058,268 185.975 34.776.346 5.191,172 40,154,493 40,679,377 al EQUITY AND LIABILITIES Equity Equity attributable to shareholders Share capital Statutory reserve eindeaming Tquity attributable to shareholders Other funds from shareholders Due to shareholders Lean from shareholders Total other funds from shareholders Total 900,000 350,000 3.827,152 7,077 152 300.000 350.000 7.907,430 9,157,114 26 26,842,679 2,414,999 292874 35,354810 23,454.033 2444999 2012.012 25.055 126 Combined statement of Financial position continued) Focus MacBook Air GOO 990 DII DD T ALT AaBbCcDdEe AaBbceDdEe AaBbCcD Heading 1 Normal No Spacing UAEU College of Business Case Study Combined statement of financial position as at December 31, 2019 (continued) All figures are expressed in 0.A.E. Dirhams 2019 Note 2018 Liabilities Non-current liabilities Finance lease liabilities Total non-current liabilities 19 49,801 176.445 176.445 49,801 Current liabilities Bank borrowings Trade and other payables Finance lease liabilities Total current liabilities Total liabilities Total equity and liabilities 18 20 19 1,155,418 1,284,732 77,863 2,518,013 2,694,458 39,059,268 4,100,376 1.444,224 28,800 5,573,400 5,623,201 40,679,327 O Focus Sheikha Fashion Store is a Corporation with a focus on Clothing/Textile manufacturing in the UAE. Sheikha Fashion needs to be evaluated by an investment analyst in order to qualify for future finances from the bank. You are the investment analyst whose required to evaluate Sheikha Fashion store on three of the five parameters given below and explain in detail, which area of the business is strong or weak using the ratios you think will fit. a. Liquidity b. Capital Structure c. Asset Management Efficiency d. Profitability and e. Market Value Ratios [6 marks] You can pick any three areas of the business mentioned above and conduct your analysis. Ratio selection is your choice as well but remember the more ratios you choose in each business area.the better. You are also required to write down a detailed recommendation/or suggestion for Sheikha Fashion, and how they can improve in future. [4 marks] Sheikha Fashion currently has 1.5 billion shares outstanding with the dividend announced for the current year (2019) at AED 25 million and last year (2018) the dividend announced was at AED 32 million for the entire group. The opening share price of Sheikha Fashion on 30th December 2020 was AED 2,514 and AED3,104.8 on 30th December 2019. Normal No Spacing o soncha Heading 1 Heading Unit Arab Emirates University UAEUS and commis Case Study Combined statement of profit or low and other comprehensive income for the year ended December 31, 2013 Al figures are expressed in UAE Dirham Note 2019 2018 Revenue 58.221.00 17,078,112 Cost of sales 152,387,617) 179.526.491 Gross profil 5.234 261 8,351,753 Salary and benefits 17.157 120 1123 Rent (161,721) 1270,0403 Administrative anses 1261,014 0339.000 Amortisation of interes 12 1451.500) 1451,500 Depreciation 6 (44621) 141.42) Baddebits d 1306.01) Allowance for impairment of inventory 21,564) Operating profit 4.131 6.100.213 Other in 10 1.758.828 1,773.961 Finance income 11 M Finance cost 11 1144846 211,671) Total.comprehensive income for the year 5.873 189 TOT 114 The combined financial statements en pass to 33 are approved on December 21, 2020 and signed on behalf of the Directory: 0 MacBook Air og DI DD F4 59 FG F7 FB 21 ABCDE ABCODE Oo AaBbCcDc Acco Heading Normal No Spacing United Arab Emirati venity College of Buses Case Study Combined statement of financial positions at December 31, 2015 Al figures are expressed in UAE Dirhams Note 2019 2018 ASSETS Non-currentes Property, plant and equipment Intangible assets Total non-current assets 6 12 233,142 75,334 451.500 524,014 239,142 Current assets Inventories Trade and other receivables Cash and bank balances Total current assets Totales 13 18 15 0 29,784,379 9,041,147 38,826,125 39,058,268 185.975 34.776.346 5.191,172 40,154,493 40,679,377 al EQUITY AND LIABILITIES Equity Equity attributable to shareholders Share capital Statutory reserve eindeaming Tquity attributable to shareholders Other funds from shareholders Due to shareholders Lean from shareholders Total other funds from shareholders Total 900,000 350,000 3.827,152 7,077 152 300.000 350.000 7.907,430 9,157,114 26 26,842,679 2,414,999 292874 35,354810 23,454.033 2444999 2012.012 25.055 126 Combined statement of Financial position continued) Focus MacBook Air GOO 990 DII DD T ALT AaBbCcDdEe AaBbceDdEe AaBbCcD Heading 1 Normal No Spacing UAEU College of Business Case Study Combined statement of financial position as at December 31, 2019 (continued) All figures are expressed in 0.A.E. Dirhams 2019 Note 2018 Liabilities Non-current liabilities Finance lease liabilities Total non-current liabilities 19 49,801 176.445 176.445 49,801 Current liabilities Bank borrowings Trade and other payables Finance lease liabilities Total current liabilities Total liabilities Total equity and liabilities 18 20 19 1,155,418 1,284,732 77,863 2,518,013 2,694,458 39,059,268 4,100,376 1.444,224 28,800 5,573,400 5,623,201 40,679,327 O Focus