State the significance of Analysis of Financial Statements to the Lenders.
Analysis of financial statements helps the lenders in assessing the long-term solvency of the business. It also helps them in evaluating the relative financial status of a firm in comparison to other competitive firms.
What is meant by a 'Common Size Statement’?
Prepare a Comparative Income Statement from the following information.
2009 2010
Rs. Rs.
Sales 10,00,000 12,50,000
Cost of goods sold 5,00,000 6,50,000
Carriage inwards 30,000 50,000
Operating Expenses 50,000 60,0000
Income Tax 50% 50%
State the objectives of 'Analysis of Financial Statements'.
Mock Test Series
