Request a call back

Join NOW to get access to exclusive study material for best results

Class 12-commerce T S GREWAL Solutions Accountancy Chapter 3: Tools of Financial Statement Analysis - Comparative Statements and Common - Size Statements

Tools of Financial Statement Analysis - Comparative Statements and Common - Size Statements Exercise 3.30

Solution Ex. 1

 

In the Books of Sun Ltd.

Comparative Balance Sheet

as at March 31, 2018 and 2019 

Particulars 

2018

(`) 

2019

(`) 

Absolute Change

(`) 

Percentage Changes

(%)

I. Equity and Liabilities

 

 

1. Shareholders' Funds

 

 

---------Share Capital

3,00,000

3,50,000

50,000

16.67

---------Shareholders' Fund

3,00,000

3,50,000

50,000

16.67

2. Non - Current Liabilities

 

 

---------Long-Term Borrowings

2,00,000

1,00,000

(1,00,000)

(50.00)

3. Current Liabilities

 

 

 

 

---------Trade Payables

1,00,000

1,50,000

50,000

50.00 

---------Total

6,00,000

6,00,000

-

-

II. Assets

 

 

 

 

1. Non - Current Assets

 

 

 

 

---------Fixed Assets (Tangible)

3,00,000

4,00,000

1,00,000

33.33

2. Current Assets

 

 

 

 

---------Trade Receivables

3,00,000

2,00,000

(1,00,000)

(33.33)

---------Total

6,00,000

6,00,000

-

-

 

Solution Ex. 2

 

In the Books of Radha Ltd.

Comparative Balance Sheet

as at March 31, 2018 and 2019 

Particulars 

2018

(`) 

2019

(`) 

Absolute Change

(`) 

Percentage Changes

( %) 

I. Equity and Liabilities

 

 

1. Shareholders' Funds

 

 

a. Equity Share Capital

10,00,000

15,00,000

5,00,000

50.00

b. Reserve and Surplus

10,00,000

10,00,000

-

-

Shareholders' Fund

20,00,000

25,00,000

5,00,000

25.00

2. Non - Current Liabilities

 

 

---------Long-Term Borrowings

2,00,000

8,00,000

6,00,000

300.00

3. Current Liabilities

 

 

 

 

---------Trade Payables 

3,00,000

5,00,000

2,00,000

66.67

---------Total

25,00,000

38,00,000

13,00,000

52.00

II. Assets

 

 

 

 

1. Non - Current Assets

 

 

 

 

Fixed Assets (Tangible)

 

 

 

 

a. Tangible Assets

15,00,000

25,00,000

10,00,000

66.67

b. Intangible Assets

5,00,000

5,00,000

-

-

 

20,00,000

30,00,000

10,00,000

50.00

2. Current Assets

 

 

 

 

a. Trade Receivables

3,50,000

6,00,000

2,50,000

71.43

b. Cash and Cash Equivalents

1,50,000

2,00,000

50,000

33.33

 

5,00,000

8,00,000

3,00,000

60.00

---------Total

25,00,000

38,00,000

13,00,000

52.00

 

Tools of Financial Statement Analysis - Comparative Statements and Common - Size Statements Exercise 3.31

Solution Ex. 3

In the Books of Blue Bell Ltd.

Comparative Balance Sheet

as at March 31, 2018 and 2019 

Particulars 

2018

(`) 

2019

(`) 

Absolute Change

(`) 

Percentage Changes

( %) 

I. Equity and Liabilities

 

 

1. Shareholders' Funds

 

 

a. Equity Share Capital

2,44,000

3,26,000

82,000

33.61

b. Reserve and Surplus

1,00,000

1,00,000

-

-

---------Shareholders' Fund

3,44,000

4,26,000

82,00

23.84

2. Non - Current Liabilities

 

 

---------Long-Term Borrowings

4,38,000

6,96,000

2,58,000

58.90

3. Current Liabilities

 

 

 

 

---------Trade Payables 

78,000

2,98,000

2,20,000

282.05

---------Total

8,60,000

14,20,000

5,60,000

65.12

II. Assets

 

 

 

 

1. Non - Current Assets

 

 

 

 

a. Fixed Assets

4,30,000

5,68,000

1,38,000

32.09

b. Non-Current Investments

4,000

6,000

2,000

50.00

 

4,34,000

5,74,000

1,40,000

32.26

2. Current Assets

 

 

 

 

a. Trade Receivables

3,76,000

6,46,000

2,70,000

71.81

b. Cash and Cash Equivalents

50,000

2,00,000

1,50,000

300.00

 

4,26,000

8,46,000

4,20,000

98.59

---------Total

8,60,000

14,20,000

5,60,000

65.12

 

Tools of Financial Statement Analysis - Comparative Statements and Common - Size Statements Exercise 3.32

Solution Ex. 4

 

In the Books of Wye Ltd.

Balance Sheet

as at March 31, 2018 and 2019 

Particulars 

2018

(`) 

2019

(`) 

Absolute Change

(`) 

Comments 

I. Equity and Liabilities

 

 

1. Shareholders' Funds

 

 

a. Share Capital

 

 

 i. Equity Share Capital

4,00,000

4,00,000

-

No Changes

 ii. Preference Share Capital

1,00,000

1,00,000

-

No Changes

b. Reserve and Surplus

1,10,000

1,20,000

10,000

Increase

---------Shareholders' Fund

6,10,000

6,20,000

10,000

2. Non - Current Liabilities

 

 

a. Long-Term Borrowings

 

 

---------Secured

4,50,000

3,50,000

1,00,000

Decrease

---------Unsecured

-

1,00,000

1,00,000

Increase

b. Long-Term Provisions

1,00,000

50,000

50,000

Decrease

3. Current Liabilities

 

 

 

 

a. Trade Payables

3,30,000

5,30,000

2,00,000

Increase 

b. Short-Term Provisions

50,000

50,000

-

No Changes 

---------Total

15,40,000

17,00,000

1,60,000

 

II. Assets

 

 

 

 

1. Non - Current Assets

 

 

 

 

a. Fixed Assets (Tangible)

10,40,000

9,90,000

50,000

Decrease

b. Non- Current Investments

1,00,000

1,00,000

-

No Changes

2. Current Assets

 

 

 

 

a. Trade Receivables

3,00,000

5,00,000

2,00,000

Increase

b. Cash and Cash Equivalents

1,00,000

1,10,000

10,000

Increase

---------Total

15,40,000

17,00,000

1,60,000

 

 

Tools of Financial Statement Analysis - Comparative Statements and Common - Size Statements Exercise 3.33

Solution Ex. 5

 

In the Books of Royal Industries Ltd.

Comparative Balance Sheet

as at March 31, 2018 and 2019 

Particulars 

2018

(`) 

2019

(`) 

Absolute Change

(`) 

Percentage Changes

( %) 

I. Equity and Liabilities

 

 

1. Shareholders' Funds

 

 

a. Equity Share Capital

5,00,000

10,00,000

5,00,000

100.00

b. Reserve and Surplus

1,00,000

1,00,000

-

-

---------Shareholders' Fund

6,00,000

11,00,000

5,00,000

83.33

2. Non - Current Liabilities

 

 

---------Long-Term Borrowings

3,00,000

2,00,000

(1,00,000)

(33.33)

3. Current Liabilities

 

 

 

 

---------Trade Payable

1,00,000

15,00,000

5,00,000

50.00

---------Total

10,00,000

15,00,000

5,00,000

50.00

II. Assets

 

 

 

 

1. Non - Current Assets

 

 

 

 

a. Fixed Assets

 

 

 

 

 i. Tangible Assets

4,00,000

8,00,000

4,00,000

50.00

 ii. Intangible Assets

2,00,000

2,00,000

-

-

b. Non-Current Investment

2,00,000

2,00,000

-

-

2. Current Assets

 

 

 

 

a. Inventories

1,50,000

2,50,000

10,00,000

66.67

b. Cash and Cash Equivalents

50,000

50,000

-

-

 

2,00,000

3,00,000

1,00,000

50.00

---------Total

10,00,000

15,00,000

5,00,000

50.00

 

Solution Ex. 6

 

Comparative Balance Sheet of Depth Ltd.

as at March 31, 2018 and March 31, 2019 

Particulars 

2019

(`) 

2018

(`) 

Absolute Change

(`) 

Percentage Changes

( %) 

I. Equity and Liabilities

 

 

1. Shareholders' Funds

 

 

a. Share Capital

2,80,000

1,80,000

1,00,000

55.56

b. Reserve and Surplus

1,00,000

1,00,000

-

-

3,80,000

2,80,000

1,00,000

35.71

2. Non - Current Liabilities

 

 

---------Long-Term Borrowings

80,000

20,000

60,000

300.00

3. Current Liabilities

 

 

 

 

---------Trade Payables

50,000

30,000

20,000

66.67

---------Total

5,10,000

3,30,000

1,80,000

54.55

II.  Assets

 

 

 

 

1. Non - Current Assets

 

 

 

 

a. Fixed Assets

 

 

 

 

 i. Tangible Assets

2,80,000

1,80,000

1,00,000

55.56

 ii. Intangible Assets

50,000

30,000

20,000

66.67

b. Non-Current Investments

80,000

50,000

30,000

60.00

 

4,10,000

2,60,000

1,50,000

57.69

2. Current Assets

 

 

 

 

a. Inventories

70,000

30,000

40,000

133.33

b. Cash and Cash Equivalents

30,000

40,000

(10,000)

(25,00)

 

1,00,000

70,000

30,000

42.86

---------Total

5,10,000

3,30,000

1,80,000

54.55

 

Tools of Financial Statement Analysis - Comparative Statements and Common - Size Statements Exercise 3.34

Solution Ex.7

Comparative Balance Sheet of H.P. Ltd.

as at March 31, 2018 and March 31, 2019 

Particulars 

2018

(`) 

2019

(`) 

Absolute Change

(`) 

Percentage Changes

( %) 

I. Equity and Liabilities

 

 

 

 

1. Shareholders' Funds

 

 

 

 

a. Share Capital

i. Equity Share

ii. Preference Share

 

5,00,000

2,50,000

 

12,50,000

2,50,000

 

7,50,000

-

150

-

Total

7,50,000

15,00,000

7,50,000

100

b. Reserve and Surplus

4,50,000

3,00,000

(1,50,000)

(33.33)

 

 

 

 

2. Non - Current Liabilities

 

 

 

 

a. Long-Term Borrowings

i. 12% Debentures

ii. Loan from Directors

 

5,50,000

2,00,000

 

9,50,000

2,50,000

4,00,000

50,000

 

 

72.73

25

 

 

Total

7,50,000

12,00,000

4,50,000

60

b. Current Liabilities

 

 

 

 

a. Short term Borrowings

b. Trade Payables

c. Short term Provisions

1,75,000

1,00,000

25,000

3,50,000

2,00,000

50,000

1,75,000

1,00,000

25,000

100

100

100

---------Total

22,50,000

36,00,000

13,50,000

60

II. Assets

 

 

 

 

1. Non - Current Assets

 

 

 

 

Fixed Assets

2. Current Assets

15,00,000

 

22,50,000

7,50,000

 

50

 

a. Inventories

b. Trade Receivables

c. Cash and Cash Equivalents

2,50,000

4,50,000

50,000

4,50,000

8,00,000

1,00,000

2,00,000

3,50,000

50,000

 

80

77.78

100

 

---------Total

22,50,000

36,00,000

13,50,000

60

 

Solution Ex. 8

 

 

Comparative Income Statement

for the year ended March 31, 2014 and 2015 

Particulars 

2014

(`) 

2015

(`) 

Absolute Change

(`) 

Percentage Change

(%) 

I. Revenue from Operations

45,00,000

60,00,000

15,00,000

33.33

II. Expenses

 

 

a. Employees Benefit Expenses

22,50,000

30,00,000

7,50,000

33.33

b. Depreciation and Amortisation

6,00,000

7,50,000

1,50,000

25.00

c. Other Expenses

10,00,000

15,50,000

5,50,000

55.00

Total Expenses

38,50,000

53,00,000

14,50,000

37.67

Profit before Income Tax (I-II)

6,50,000

7,00,000

50,000

7.69

---------Less: Income Tax

1,95,000

2,10,000

15,000

7.69

Profit after Income Tax

4,55,000

4,90,000

35,000

7.69

 

Tools of Financial Statement Analysis - Comparative Statements and Common - Size Statements Exercise 3.35

Solution Ex. 9

 

Comparative Income Statement

for the year ended March 31, 2018 and 2019 

Particulars 

2018

(`) 

2019

(`) 

Absolute Change

(`) 

Percentage Change

(%) 

I. Revenue from Operations

3,00,000

3,50,000

50,000

16.67

II. Expenses

 

 

---------Purchases of Stock-in-Trade

1,80,000

2,10,000

30,000

16.67

---------Changes in Inventories of Stock-in-Trade

20,000

15,000

(5,000)

(25.00)

---------Employees Benefit cost

15,000

17,500

2,500

16.67

---------Other Expenses

5,000

7,500

2,500

50.00

2,20,000

2,50,000

30,000

13.67

Profit before Income Tax (I-II)

80,000

1,00,000

20,000

25.00

---------Less: Income Tax

24,000

30,000

6,000

25.00

Profit after Income Tax

56,000

70,000

14,000

25.00

 

Solution Ex. 10

 

Comparative Balance Sheet

For the year ended March 31, 2018 and 2019 

Particulars 

2018

(`) 

2019

(`) 

Absolute Change

(`) 

Percentage Change

(%) 

I. Revenue from Operations

2,50,000

3,00,000

50,000

20.00

II. Expenses

 

 

---------Cost of Materials Consumed

1,00,000

1,20,000

20,000

20,000

---------Changes in Inventories of WIP and Finished Goods

5,000

(2,000)

(7,000)

(140.00)

---------Employees Benefit Expenses (Wages)

25,000

30,000

5,000

20.00

---------Other Expenses

20.000

22,000

2,000

10.00

1,50,000

1,70,000

20,000

13.33

Profit before Income Tax (I-II)

1,00,000

1,30,000

30,000

30.00

---------Less: Income Tax

-

-

-

-

Profit after income Tax

1,00,000

1,30,000

30,000

30.00

 

Tools of Financial Statement Analysis - Comparative Statements and Common - Size Statements Exercise 3.36

Solution Ex. 11

 

Comparative Income Statement

for the year ended March 31, 2018 and 2019 

Particulars 

2018

(`) 

2019

(`) 

Absolute Change

(`) 

Percentage Change

(%) 

 I. Revenue from Operations

20,00,000

30,00,000

10,00,000

50.00

 II. Other Income

4,00,000

3,60,000

(40,000)

(10.00)

 III. Total Revenue (I+II)

24,00,000

33,60,000

9,60,000

40.00

 IV. Expenses

12,00,000

21,00,000

9,00,000

75.00

Profit before Income Tax (I-II)

12,00,000

12,60,000

60,000

5.00

Less: Income Tax @ 40%

4,80,000

5,04,000

24,000

5.00

Profit after income Tax

7,20,000

7,56,000

36,000

5.00

 

Working Notes:

1 Computation of Other Income 

Particulars

2017

(Rs.) 

2018

(Rs.) 

Revenue from operations

20,00,000

30,00,000

% of Revenue from operations

20%

12%

Other Income

4,00,000

3,60,000

 

2 Computation of Expenses

Particulars

2017

(Rs.) 

2018

(Rs.) 

Revenue from operations

20,00,000

30,00,000

% of Revenue from operations

60%

70%

Expenses  

12,00,000

21,00,000

 

Solution Ex. 12

 

Comparative Income Statement

for the year ended March 31, 2018 and 2019 

Particulars 

March

31, 2018

(`) 

March

31, 2019

(`) 

Absolute Change

(`) 

Percentage Change

(%) 

 I. Revenue from Operations (WNI) 

12,00,000

16,80,000

4,80,000

40.00

 

 

 II. Expenses

 

 

a. Cost of Material Consumed

6,00,000

13,44,000

7,44,000

124.00

b. Other Expenses (WN2)

1,20,000

1,68,000

48,000

40.00

7,20,000

15,12,000

7,92,000

110.00

Profit before Income Tax (I-II)

4,80,000

1,68,000

(3,12,000)

(65.00)

---------Less: Income Tax @ 50%

2,40,000

84,000

(1,56,000)

(65.00)

Profit after income Tax

2,40,000

84,000

1,56,000

65.00

 

Working Notes:

1 Computation of Revenue from operations  

Particulars

2018

(Rs.) 

2019

(Rs.) 

Cost of Materials Consumed

6,00,000

13,44,000

% of Materials Consumed

200%

125%

Revenue from operations

12,00,000

16,80,000

 

2 Computation of Other Expenses 

Particulars

2018

(Rs.) 

2019

(Rs.) 

Revenue from operations

% of Revenue from operations

12,00,000

10%

16,80,000

10%

Other Income

1,20,000

1,68,000

 

Solution Ex. 13

 

Comparative Income Statement

for the year ended March 31, 2018 and 2019 

Particulars 

2018

(`) 

2019

(`) 

Absolute Change

(`) 

Percentage Change

(%) 

I. Revenue from Operations

40,00,000

50,00,000

10,00,000

25,00

II. Expenses

 

 

---------Purchases of Stock-in-Trade

28,50,000

34,00,000

5,50,000

19.30

---------Changes in Inventories of Stock-in-Trade

1,50,000

1,00,000

(50,000)

(33.33)

---------Employees Benefit Expenses

1,00,000

1,00,000

-

-

---------Other Expenses

1,50,000

2,00,000

5,50,000

33.33

32,50,000

38,00,000

5,50,000

16.92

Profit before Income Tax (I-II)

7,50,000

12,00,000

4,50,000

60,00

---------Less: Income Tax

-

-

-

-

Profit after income Tax

7,50,000

12,00,000

4,50,000

60.00

 

Tools of Financial Statement Analysis - Comparative Statements and Common - Size Statements Exercise 3.37

Solution Ex. 14

 

Comparative Income Statement

for the year ended March 31, 2018 and 2019 

Particulars 

March

31, 2018

(`) 

March

31, 2019

(`) 

Absolute Change

(`) 

Percentage Change

(%) 

 I. Revenue from Operations

25,00,000

37,50,000

12,50,000

50.00

 II. Other Income

5,00,000

4,50,000

(50,000)

(10.00)

 III. Total Revenue (I+II)

30,00,000

42,00,000

12,00,000

40.00

 IV. Expenses

 

 

a. Cost of Materials Consumed

12,50,000

22,50,000

10,00,000

80.00

b. Other Expenses

2,50,000

3,75,000

1,25,000

50.00

15,00,000

26,25,000

11,25,000

75.00

Profit before Income Tax (I-II)

15,00,000

15,75,000

75,000

5.00

Less: Income Tax@ 50%

7,50,000

7,87,500

37,500

5.00

Profit after Income Tax

7,50,000

7,87,500

37,500

5.00

 

Solution Ex. 15

 

Comparative Income Statement

For the year ending  March 31, 2012 and 2013 

Particulars 

March

31, 2012

(Rs.) 

March

31, 2013

(Rs.) 

Absolute Change

(Rs.)

Percentage Change

(%)

 I. Revenue from Operations

8,00,000

14,00,000

6,00,000

75

 II. Other Income

4,00,000

6,00,000

2,00,000

50

 III. Total Revenue (I+II)

12,00,000

20,00,000

8,00,000

66.67

 IV. Expenses

 

 

a. Other Expenses

11,00,000

17,00,000

6,00,000

54.55

-------Total Expenses

11,00,000

17,00,000

6,00,000

54.55

Profit Before Tax (III-IV)

1,00,000

3,00,000

2,00,000

200

-------Less: Income Tax @ 40%

40,000

1,20,000

80,000

200

Profit After Tax

60,000

1,80,000

1,20,000

200

 

Solution Ex.16

 

Comparative Income Statement

for the year ended March 31, 2018 and 2019 

Particulars 

March

31, 2018

(Rs.) 

March

31, 2019

(Rs.) 

Absolute Change

(Rs.)

Percentage Change

(%)

 I. Revenue from Operations

17,50,000

20,00,000

2,50,000

14.29

 II. Other Income

50,000

75,000

25,000

50.00

 III. Total Revenue (I+II)

18,00,000

20,75,000

2,75,000

15.28

 IV. Expenses

 

 

a. Purchases of Stock-in-Trade

10,00,000

11,60,000

1,60,000

16.00

b. Changes in Inventory of Stock-in-Trade

(25,000)

10,000

35,000

140.00

c. Employee Benefit Expenses

3,00,000

3,00,000

-

-

d. Depreciation

50,000

50,000

-

-

e. Other Expenses

75,000

90,000

15,000

20.00

14,00,000

16,10,000

2,10,000

15.00

Profit Before Income Tax

4,00,000

4,65,000

65,000

16.25

-------Less: Income Tax

-

-

-

-

Profit After Income Tax

4,00,000

4,65,000

65,000

16.25

 

Tools of Financial Statement Analysis - Comparative Statements and Common - Size Statements Exercise 3.38

Solution Ex. 17

Common Size Income Statement

For the year ended March 31, 2015 and 2016 

Particulars 

Absolute Amount

(Rs.) 

Percentage Change

(%)

2014-15

2015-16

2014-15

2015-16

 I. Revenue from Operations

20,00,000

25,00,000

100.00

100.00

 II. Other Income

-----

----

----

-----

-------Total Revenue (I+II)

20,00,000

25,00,000

100.00

100.00

 III. Expenses

 

 

------- Employee Benefit Expenses

7,00,000

10,00,000

35.00

40.00

------- Other Expenses

3,00,000

2,00,000

15.00

8.00

10,00,000

12,00,000

50.00

48.00

Profit before Income Tax

10,00,000

13,00,000

50.00

52.00

-------Less: Income Tax @ 40%

4,00,000

5,20,000

20.00

20.80

Profit after income Tax

6,00,000

7,80,000

30.00

31.20

 

Solution Ex. 18

 

Common Size Income Statement

For the year ended March 31, 2018 

Particulars 

Absolute Change

(Rs.)

Percentage of Revenue of Revenue from Operations

(%)

 I. Revenue from Operations

15,00,000

100.00

 II. Other Incomes

60,000

4.00

Total Revenue (I+II)

15,60,000

104.00

 III. Expenses

-------Purchases of Stock-in-Trade

7,50,000

50.00

-------Changes in Inventory of Stock-in-Trade

50,000

3.33

-------Other Expenses

2,10,000

14.00

5,50,000

36.67

Profit before Income Tax

5,50,000

36.67

-------Less: Income Tax

-

-

Profit after Income Tax

5,50,000

36.67

 

Tools of Financial Statement Analysis - Comparative Statements and Common - Size Statements Exercise 3.39

Solution Ex. 19

 

Common Size Income Statement

For the year ended 

Particulars 

Absolute Change

(Rs.) 

Percentage Change

(%)

Year I

Year II

Year I

Year II

 I. Revenue from Operations

14,00,000

16,00,000

100.00

100.00

 II. Expenses

 

 

-------Purchases of Stock-in-Trade

9,00,000

10,00,000

64.28

62.50

-------Changes in Inventory of Stock-in-Trade

1,00,000

1,80,000

7.14

11.25

-------Employee Benefit Expenses

80,000

80,000

5.71

5.00

-------Other Expenses

90,000

1,30,000

6.43

8.12

 

 

Profit before Income Tax

2,30,000

2,10,000

16.43

13.13

-------Less: Income Tax

40,000

36,000

2.84

2.25

Profit after income Tax

1,90,000

1,74,000

13.57

10.88

 

 

Solution Ex. 20

 

Common Size Balance Sheet

as at March 31, 2019 

Particulars 

Absolute Amount

(Rs.) 

Percentage of Balance Sheet Total (%)

Sun Ltd.

Star Ltd.

Sun Ltd.

Star Ltd.

I.  Equity and Liabilities

 

 

1. Shareholders' Funds

 

 

a. Share Capital

9,00,000

12,00,000

60.00

66.67

b. Reserve and Surplus

4,00,000

3,50,000

26.67

19.44

2. Non - Current Liabilities

 

 

-------Trade Payables

2,00,000

2,50,000

13.33

13.89

-------Total

15,00,000

18,00,000

100.00

100.00

II.  Assets

 

 

 

 

1. Non - Current Assets

 

 

 

 

-------Fixed Assets

10,00,000

16,00,000

66.67

88.89

2. Current Assets

 

 

 

 

-------Inventories

5,00,000

2,00,000

33.33

11.11

-------Total

15,00,000

18,00,000

100.00

100.00

 

Comments:

1. Star Ltd. has a greater share of Capital in the total Shareholders' funds available i.e. 66.67% in comparison to 60% of Sun Ltd.

2. Sun Ltd. retains greater share of earnings as compared to Star Ltd. Sun Ltd. retains 26.67% of their earnings as a part of Reserves and Surplus. Whereas, Star Ltd. retains only 19.44% of their earnings.

3. Star Ltd. has invested major portion of its funds on acquiring the Fixed Assets whereas Sun Ltd. has more investments in current assets. Star Ltd. applied 88.89% of its funds in fixed assets as compared to 66.67% by Sun Ltd. On the other hand, Sun Ltd. emphasizes more on Current Assets and have applied 33.33% of the total funds in comparison to 11.11% of Star Ltd.