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Calculate the following ratios a. Liquid ratio.

Calculate the following ratios a. Liquid ratio.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Calculate the following ratios a. Liquid ratio. 
AL AHLIA INSURANCE COMPANY SAOG STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the year ended 31 December 2020 2020 2019 Notes RO RO Insurance premium revenue Insurance premium ceded to reinsurers 19 21,272,026 (3,166,494) 24,881,678 19 (1,866,017) Net insurance premium revenue Commissions received on ceded reinsurance Claims Reinsurers' share of claims Deferred acquisition cost Commissions paid 19 18,105,532 194,326 (13,214,261) 6,687,417 (134,160) (1,752,118) 23,015,661 128,795 (14,690,883) 3,114,572 12,322 (2,042,485) 20 20 8 Net underwriting result General and administrative expenses Investment income (net) Interest on lease liabilities Other income - net 9,886,736 (7,037,876) 2,090,707 (75,576) 325,849 9,537,982 (6,308,228) 1,726,244 (80,746) 1,203 22 21 33 Profit before taxation 5,189,840 4,876,455 Income tax 23 (800,000) (765,000) Profit and other comprehensive income for the year 4,389,840 4,111,455 Basic and diluted earnings per share 27 0.044 0.041
Transcribed Image Text:AL AHLIA INSURANCE COMPANY SAOG STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the year ended 31 December 2020 2020 2019 Notes RO RO Insurance premium revenue Insurance premium ceded to reinsurers 19 21,272,026 (3,166,494) 24,881,678 19 (1,866,017) Net insurance premium revenue Commissions received on ceded reinsurance Claims Reinsurers' share of claims Deferred acquisition cost Commissions paid 19 18,105,532 194,326 (13,214,261) 6,687,417 (134,160) (1,752,118) 23,015,661 128,795 (14,690,883) 3,114,572 12,322 (2,042,485) 20 20 8 Net underwriting result General and administrative expenses Investment income (net) Interest on lease liabilities Other income - net 9,886,736 (7,037,876) 2,090,707 (75,576) 325,849 9,537,982 (6,308,228) 1,726,244 (80,746) 1,203 22 21 33 Profit before taxation 5,189,840 4,876,455 Income tax 23 (800,000) (765,000) Profit and other comprehensive income for the year 4,389,840 4,111,455 Basic and diluted earnings per share 27 0.044 0.041
AL AHLIA INSURANCE COMPANY SAOG STATEMENT OF FINANCIAL POSITION At 31 December 2020 2020 RO 2019 Notes RO Assets 2,332,733 38,412,876 5,883,353 6,965,366 440,561 6,058,834 70,741 71,429 2,407,890 1,184,996 1,186,634 165,776 15,448,529 3,039,788 40,712,876 6,179,378 6,693,579 280,765 4,604,468 68,278 71,429 2,408,351 1,149,843 1,485,634 148,832 15,448,529 5 Cash and cash equivalents Bank deposits Premiums and insurance balances receivable Reinsurers' share of outstanding claims Reinsurers' share of unearned premium reserve Other receivables and prepayments Investments at fair value through profit or loss Available-for-sale investments Held-to-maturity investments Property and equipment Right of use assets Deferred tax asset 6 7 20 17 8 11 33 23 Goodwill 12 Total assets 80,629,718 82,291,750 Equity and liabilities Capital and reserves Share capital Legal reserve Contingency reserve 10,000,000 3,909,423 10,000,000 113,876 15,763,591 10,000,000 3,909,423 10,000,000 114,596 15,473,031 13 14 15 Revaluation reserve 16 Retained earnings Total equity 39,786,890 39,497,050 Liabilities Liabilities arising from insurance contracts Gross unearned premium reserve Gross outstanding claims 10,774,725 23,442,679 17 8,588,703 22,984,039 20 31,572,742 1,092,187 5,896,380 1,122,332 1,159,187 34,217,404 926,646 4,125,592 1,407,042 2,118,016 Reinsurance balances payable Other liabilities and accruals 18 Lease liabilities 33 Income tax payable 23 Total liabilities 40,842,828 42,794,700 Total equity and liabilities 80,629,718 82,291,750 Net assets per share 26 0.398 0.395
Transcribed Image Text:AL AHLIA INSURANCE COMPANY SAOG STATEMENT OF FINANCIAL POSITION At 31 December 2020 2020 RO 2019 Notes RO Assets 2,332,733 38,412,876 5,883,353 6,965,366 440,561 6,058,834 70,741 71,429 2,407,890 1,184,996 1,186,634 165,776 15,448,529 3,039,788 40,712,876 6,179,378 6,693,579 280,765 4,604,468 68,278 71,429 2,408,351 1,149,843 1,485,634 148,832 15,448,529 5 Cash and cash equivalents Bank deposits Premiums and insurance balances receivable Reinsurers' share of outstanding claims Reinsurers' share of unearned premium reserve Other receivables and prepayments Investments at fair value through profit or loss Available-for-sale investments Held-to-maturity investments Property and equipment Right of use assets Deferred tax asset 6 7 20 17 8 11 33 23 Goodwill 12 Total assets 80,629,718 82,291,750 Equity and liabilities Capital and reserves Share capital Legal reserve Contingency reserve 10,000,000 3,909,423 10,000,000 113,876 15,763,591 10,000,000 3,909,423 10,000,000 114,596 15,473,031 13 14 15 Revaluation reserve 16 Retained earnings Total equity 39,786,890 39,497,050 Liabilities Liabilities arising from insurance contracts Gross unearned premium reserve Gross outstanding claims 10,774,725 23,442,679 17 8,588,703 22,984,039 20 31,572,742 1,092,187 5,896,380 1,122,332 1,159,187 34,217,404 926,646 4,125,592 1,407,042 2,118,016 Reinsurance balances payable Other liabilities and accruals 18 Lease liabilities 33 Income tax payable 23 Total liabilities 40,842,828 42,794,700 Total equity and liabilities 80,629,718 82,291,750 Net assets per share 26 0.398 0.395
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