Analysis Of Financial Statements

Question

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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%

Solution

Comparative Income Statement

Particulars

2009 (Rs)

2010(Rs)

Absolute Change Rs

% of Increase or Decrease

Sales

Less Cost of Goods Sold

Gross Profit

Less Operating Expenses

Net Profit before tax

Less Income Tax

Net Profit After tax

10,00,000

5,00,000

12,50,000

6,50,000

2,50,000

1,50,000

5,00,000

50,000

6,00,000

60,000

1,00,000

10,000

4,50,000

2,25,000

5,40,000

2,70,000

90,000

45,000

2,25,000

2,70,000

45,000

Some More Questions From Analysis of Financial Statements Chapter

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.

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.

What is meant by a 'Common Size Statement’?