FINANCIAL STATEMENT ANALYSIS. From the information given below, prepare a Common Size Income Statement of Relay Ltd.:

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Ferdinand Glenn
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1,00,000 Other Expenses 1,70,000 1,50,000 Question 11.2 From the following balance sheets (position statements) of Rayan ltd.,as on 31/12/14 and 31/12/15 prepare a comparative balance sheet. I.

1 CHAPTER 11 Question 11.1 FINANCIAL STATEMENT ANALYSIS From the information given below, prepare a Common Size Income Statement of Relay Ltd.: Particulars 31 st March, st March, 2013 ` Revenue from Operations 51,73,000 49,70,000 Other Income 35,000 40,000 Purchase of Stock-in Trade 40,50,000 33,20,000 Change in Inventories (90000) 1,00,000 Other Expenses 1,70,000 1,50,000 Question 11.2 From the following balance sheets (position statements) of Rayan ltd.,as on 31/12/14 and 31/12/15 prepare a comparative balance sheet. I.EQUITY AND LIABILITIES 31/12/2014 (Rs) 31/12/2015 (Rs) 6% preference share capital 12,00,000 18,00,000 euity share capital 21,00,000 29,00,000 generalreserve 2,00,000 2,10,000 p and l a/c balance 1,00,000 1,80,000 loan on mortgage 2,00,000 1,40,000 5% debentures 6,00,000 secured bank loan 1, 1,20,000 employee provident fund 1,16,000 1,24,000 creditors 1,00,000 2,00,000 bills payable 20,000 40,000 provisions for tax 25,000 50,000 outstanding expenses 69,000 90,000 TOTAL 47,60,000 64,54,000 II.ASSETS land and buildings 10,00,000 12,25,000 plant and machinery 6,00,000 7,00,000 furniture 50,000 40,000 vehicles 12,60,000

2 goodwill 3,50,000 3,15,000 investments infixed deposits 5,27,000 10,54,000 debtors 3,00,000 3,50,000 bills receivables 2,50,000 90,000 stock 1,00,000 2,00,000 loose tools 50,000 20,000 prepaid rent 40,000 50,000 prepaid insurance 20,000 40,000 cash and bank 9,70,000 11,00,000 prepaid taxes 3,000 10,000 TOTAL 47,60,000 64,54,000 Question 11.3 Prepare common size Income statement of Tata Ltd., for the year ending 31/12/2013. Particulars AMOUNT(Rs. ) Sales 50,10,000 Sales returns 10,000 Cost of goods sold 2 Employee benefit expenses 4,00,000 Other Office and administrative expenses 2,00,000 Other Selling and distribution expenses 2,50,000 Depreciation expenses 4,50,000 Financial expenses 1,50,000 Income Tax 50% Income from investments 1,00,000 Amortization Expenses(goodwill written off, 50,000 preliminary expenses written off etc.,) Question 11.4 Prepare Common size balance sheet of Reflex Ltd. from the following information: PARTICULARS DEBIT AMT. CREDIT AMT. Equity Share Capital 1 8% Preference Share Capital Stock(31 st December 2012) 80,000 - Debtors and Creditors 70,000 60,000 B/R and B/P 20,000 25,000 Securities Premium 15,000 Preliminary Expenses 60,000 Calls-in-arrears(Equity) 50,000 Outstanding interest on 10,000

3 Debentures Loose Tools 13,000 Provision for Taxation 22,000 Insurance paid in advance 17,000 Land 15,70,000 Net Profit ( ) 5,38,000 Plant and Machinery 3,45,000 Furniture 50,000 Investments 15,000 Goodwill 11,000 General Reserve 27,000 Buildings 7,00,000 Public Deposits 95,000 Cash&Bank overdraft 25,000 12,000 Bank Loan on mortgage 40,000 Vehicles 58,000 10% Debentures 1,00,000 Salaries outstanding 11,000 P&L Bal.,( ) 89,000 Unclaimed Dividends 40,000 TOTAL 30,84,000 30,84,000 Question 11.5 Prepare common size income statement from the following information: Particulars Revenue from operation Sales returns Income from investments Cost of revenue from operations Employee benefit expenses Office and administrative expenses Selling and distribution expense Depreciation Financial expenses Amortisation expense Income tax 10,90,000 90,000 50, ,00,000 3,00,000 6,00,000 1,00,000 2,00,000 40% Question 11.6 From the following information prepare a Comparative Balance sheet of Relay Ltd. Particulars 31 st March st March 2016 Equity share capital Fixed assets 2 30,00,000 26,00,000 3

4 Reserve and surplus Investments Long term loans Current assets Current liabilities 1 1 6,00,000 14,00,000 11,50,000 5,50,000 Question 11.7 (ISC 2015) (a) Give any two objectives of preparing common size statements. [2] (b) From the following data, prepare a Comparative Statement of Profit and Loss of Simon ltd. Particulars Revenue from operations 1 Other income Cost of materials consumed 7,00,000 (c ) From the following data, prepare common size balance sheet of Mint ltd. Particulars Share capital Reserves and surplus Trade payable Fixed tangible assets 1,50,000 20,000 2,00, ,00,000 20,000 5,50, ,20,000 40,000 1,90,000 Question 11.8 (SP 2017) From the following data, prepare a Common Size Statement of Profit & Loss of Pitambar Ltd. Particulars Revenue from operations (% of other income) 200% 200% Other income 2,00,000 1,50,000 Cost of material consumed (% of operating 60% 50% revenue ) Other expenses (% of material cost ) 10% 20% Tax rate 30% 30% Question 11.9 (ISC 2016) From the following data, prepare common size statement of profit and loss of Nicholson Ltd. PARTICULARS

5 Revenue from operations 6,00,000 4,00,000 Cost of material consumed 60% of Revenue from operations 50% of Revenue from operations Finance cost 10,000 8,000 Tax rate 40% of profit before tax 40% of profit before tax Question Particulars Revenue from operation Purchase of materials Change in inventory Employee benefit expenditure Depreciation and amortization Other expenses Income tax % %

CASH FLOW STATEMENT.. No.

CASH FLOW STATEMENT.. No. CHAPTER 12 CASH FLOW STATEMENT Question 12.1 Prepare cash flow statement for the year ended 31 st March 2016 from the following balance sheets of KYC Ltd. Particulars I. EQUITY AND LIABILITIES Share holders