COMMON SIZE STATEMENT ANALYSIS

Problem: - 1

Following are the Balance Sheets of A Ltd. as on 31/3/2019 and 31/3/2020.

31/3/201 31/3/202 31/3/201 31/3/202

Liabilities Assets
9 0 9 0
Equity Capital 1,00,000 1,65,000 Fixed Assets 1,20,000 1,75,000
Preference
50,000 75,000 Stock 20,000 25,000
Capital
Reserves 10,000 15,000 Debtors 50,000 62,500
P & L A/c 7,500 10,000 B/R 10,000 30,000
Prepaid
BOD 25,000 25,000 5,000 6,000
Expenses
Creditors 20,000 25,000 Cash at Bank 20,000 26,500
Provision for
10,000 12,500 Cash in Hand 5,000 15,000
Taxation
Proposed
7,500 12,500
Dividend
2,30,000 3,40,000 2,30,000 3,40,000

Prepare Common Size Balance Sheet.

Problem: - 2
Covert the following income statement into Common Size Statement and
interpret the changes in 2018 in the light of conditions of 2017.

Particulars 2019 2020

Gross Sales 15,300 18,360
Less: Return 300 350
Net Sales 15,000 18,010
Less: Cost of Goods Sold 9,100 10,125
Gross Profit 5,900 7,885
Less: Operating Expenses
 Administration Expenses 1,500 1,700
 Sales Expenses 3,000 3,300
Total Expenses 4,500 5,000
Income from Operations 1,400 2,885
Add: Non-operating Income 150 200
Total Income 1,550 3,085
Less: Non-operating Expenses 200 300
Net Profit 1,350 2,785