Sponsor Area
Analysis Of Financial Statements
From the following Balance Sheets of Sonam Ltd as on 31-3-2012 and 31-3-2011.
Prepare a Cash Flow Statements:
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Liabilities |
31-3-2011 Rs |
31-3-2011 Rs |
Assets |
31-3-2011 Rs |
31-3-2011 Rs |
|
Equity Shares Capital Profit and Loss Account Bank Loan Proposed Dividend Provision for tax Creditors |
1,00,000
25,000
50,000 20,000
10,000 15,000
|
1,50,000
50,000
25,000 15,000
17,500 11,250 |
Patents Building Investment Debtors Stock Cash
|
12,500 1,50,000 - 50,000 2,500 5,000 |
11,250 1,50,000 18,750 3,750 21,250 |
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2,20,000 |
2,68,750 |
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2,20,000 |
2,68,750 |
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Additional Information:
During the year a Building having book value Rs 50,000 was sold at a loss of Rs 2,000 and depreciation charged on Building was Rs 4,000.
Cash Flow Statement Activities:
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Particulars |
Amount Rs |
Amount Rs |
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a)Cash Flow from Operating Activities |
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Profit during the year 25,000 |
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Proposed Dividend 15,000 |
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Provision for Taxation 17,500 |
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Profit before Taxation |
57,500 |
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Add: non cash and non-operating expenses |
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Depreciation |
4,000 |
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Loss on Sale of Assets |
2,000 |
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Patents Written-off |
1,250 |
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Operating Profit before Working Capital Changes |
64,750 |
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Less: |
Increase in current assets and decrease in current liabilities Increase in Debtors |
(13,750) |
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Increase in Stock |
(1,250) |
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Decrease in Creditors |
(3,750) |
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Profit from operation before Tax paid |
46,000 |
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Less: |
Tax paid |
10,000 |
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Net Cash flow from Operating Activities |
36,000 |
36,000 |
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(B) Cash Flow from Investing Activities |
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Proceeds from Sale of Building |
48,000 |
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Less: |
Purchase of Building |
(54,000) |
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Less: |
Purchase of Investment |
(18,750) |
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Net Cash flow from Investing Activities |
(24,750) |
(24,750) |
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(C) Cash Flow from Financing Activities |
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Proceeds from Issue of Share |
50,000 |
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Less: |
Repayment of loan |
(25,000) |
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Less: |
Dividend Paid |
(20,000) |
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Net Cash flow from Financing Activities |
5,000 |
5,000 |
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Net Increase in Cash and Cash Equivalents(A+B+C) |
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16,250 |
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Add: |
Cash at the beginning |
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5,000 |
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Cash at the end |
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21,250 |
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Working Notes:
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Building Account |
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Dr. |
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Cr. |
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Date |
Particulars |
Amount Rs |
Date |
Particulars |
Amount Rs |
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Balance b/d |
1,50,000 |
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Depreciations |
4,000 |
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Sale |
48,000 |
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Profit and loss a/c |
2,000 |
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Bank A/c (Purchase-Balancing figure) |
54,000 |
By balance c/d |
1,50,000 |
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2,04,000 |
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2,04,000 | |||
Some More Questions From Analysis of Financial Statements Chapter
State any one objective of Financial Statement Analysis.
State the significance of Analysis of Financial Statements to the Lenders.
Following is the Income statements of Raj Ltd. For the year ended 31-3-2011:
Particulars
Amount
Rs
Income:
Sales
2,00,000
Other Incomes
15,000
Total Income
2,15,000
Expenses:
Cost of goods sold
1,10,000
Operating expenses
5,000
Total Expenses
1,15,000
Tax
40,000
Prepare a common size Income Statements of Raj Ltd. for the year ended 31-3-2011.
Particulars
Amount
Rs
Income:
Sales
2,00,000
Other Incomes
15,000
Total Income
2,15,000
Expenses:
Cost of goods sold
1,10,000
Operating expenses
5,000
Total Expenses
1,15,000
Tax
40,000
From the following Balance Sheets of Sonam Ltd as on 31-3-2012 and 31-3-2011.
Prepare a Cash Flow Statements:
Liabilities
31-3-2011
Rs
31-3-2011
Rs
Assets
31-3-2011
Rs
31-3-2011
Rs
Equity Shares Capital
Profit and Loss Account
Bank Loan
Proposed Dividend
Provision for tax
Creditors
1,00,000
25,000
50,000
20,000
10,000
15,000
1,50,000
50,000
25,000
15,000
17,500
11,250
Patents
Building
Investment
Debtors
Stock
Cash
12,500
1,50,000
-
50,000
2,500
5,000
11,250
1,50,000
18,750
63,750
3,750
21,250
2,20,000
2,68,750
2,20,000
2,68,750
Additional Information:
During the year a Building having book value Rs 50,000 was sold at a loss of Rs 2,000 and depreciation charged on Building was Rs 4,000.
Prepare a Cash Flow Statements:
Liabilities
31-3-2011
Rs
31-3-2011
Rs
Assets
31-3-2011
Rs
31-3-2011
Rs
Equity Shares Capital
Profit and Loss Account
Bank Loan
Proposed Dividend
Provision for tax
Creditors
1,00,000
25,000
50,000
20,000
10,000
15,000
1,50,000
50,000
25,000
15,000
17,500
11,250
Patents
Building
Investment
Debtors
Stock
Cash
12,500
1,50,000
-
50,000
2,500
5,000
11,250
1,50,000
18,750
63,750
3,750
21,250
2,20,000
2,68,750
2,20,000
2,68,750
During the year a Building having book value Rs 50,000 was sold at a loss of Rs 2,000 and depreciation charged on Building was Rs 4,000.
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%
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'.
Sponsor Area
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