Financial statement analysis-Important Questions

IMPORTANT QUESTIONS

CHAPTER 12: Financial Statement Analysis

  1. What are comparative and common-size statements?
  2. Differentiate between horizontal and vertical analysis?
  3. What are the uses of financial analysis?
  4. From the following balance sheet of X Ltd. as at 31st March 2019, prepare comparative balance sheet:-
    5. Particulars Note no. 31st March 2019 31st March 2018
    1. Equity and Liabilities Share capital
    2. Non-current Liabilities Long–term borrowings:8% debentures (secured)
    3. Current Liabilities Trade payables
    		 18,00,000
    6,00,000
    6,00,000    		 12,00,000
    6,00,000
    3,00,000
    Total 30,00,000 21,00,000
    II. Assets
    1. Non-current assets
      Fixed assets: Tangible Assets
    2. Current Assets
      1. Trade receivables
      2. Cash and cash equivalents

    18,00,000

    10,00,000
    2,00,000

    15,00,000

    5,00,000
    1,00,000
    Total 30,00,000 21,000,000
  5. From the following statement of profit and loss for the year ended 31st March, 2014. Prepare comparative statement of profit and loss of Good Services Ltd.
    Particulars Note no. 2013-14 2012-13
    Revenue from operations
    Other incomes
    Expenses    		 20,00,000
    10,00,000
    21,00,000
    		 15,00,000
    4,00,000
    15,00,000
    Rate of income tax was 50%.
  6. From the following statement of profit and loss for the years ended 31st March, 2012 and 2013, prepare common-size statement of profit and loss:-
    Particulars Note no. 31st March 2013 31st March 2012
    1. Income
      Revenue from operations (net sales)
    2. Expenses
      Purchase of stock In trade
      Change in inventories
      Depreciation and amortization expenses
      Other expenses
    12,50,000

    8,70,000
    (20,000)
    30,000
    50,000
    10,00,000

    7,20,000
    30,000
    20,000
    30,000
    Total 9,30,000 8,00,000
          3. Profit before Tax(I-II)
          4. Less: Income tax
    		 3,20,000
    96,000
    		 2,00,000
    60,000
          5. Profit after Tax (III-IV) 2,24,000 1,40,000