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.