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 99035Introduction
03989 to Financial Statement Analysis
Introduction To Financial Statement Analysis

ϭ͘ [2006]. From the information given below prepare a Comparative Income:

2004 2005
- -
Sales 4,00,000 5,00,000
Cost of goods sold 2,40,000 3,50,000
Operating expenses 1,20,000 1,80,000
(5marks)

2.[2007] – With the help of following information for the year ended 2006, prepare a
‘Common Size

Income Statement’

Selling and Distribution expenses ₹ 10,000

Administration expenses ₹ 20,000

Cost of sales : 75% of Net Sales.

Income tax : 20% of Net Profit before tax.

Net income after tax ₹ 48,000

Other income ₹ 10,000

(5marks)

3.[2007] – From the trend % supplied below, prepare a comparative statement of currentassets in

Absolute value taking 2003 as the base year

Trend percentage Corresponding value of current Assets

2004 2005 2006 2006

120 130 150 3,600 - Cash & Bank

130 140 200 6,800 - Debtors

160 220 250 4,000 - Finished goods

175 250 300 4,500 - WIP

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110 150 175 1,750 - Raw Materials

(5marks)

4. [2007] – From the following balance sheet of New India Ltd. Prepare comparativeBalance
sheet:

Particulars 2004 2005

I. EQUITY AND LIABILITIES

(1)
Shareholders ‘ s funds Share
(a)
capital 30,000 60,000
(b)
Reserves and surplus 12,000 10,000
(2)
Non-current liabilities
(a)
Long-term borrowings & debentures
60,000 60,000

TOTAL 1,02,000 1,30,000

II. ASSETS
(1) Non-currents assets
(a) Fixed assets 80,000 1,02,000
(2) Current assets
Trade receivables debtors Cash
(a) 10,000 20,000
and cash equivalents Bank
(b) 12,000 8,000

TOTAL 1,02,000 1,30,000

(5marks)

5. [2008] – From the following information make comparable Profit and Loss account of A Ltd

And B Ltd In terms of percentages only .

A Ltd. B Ltd.
-In lac -In lac
Sales 15 80
Cost of Goods sold 12 60
Administrative expenses 0.7 5
Selling expense 0.6 7
Financial charge 0.2 2

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99035 03989
6. [2009] – Following data are available from M & Co. for 2006 and 2007 . You are required to
prepare

A Common-Size Statement of Income

SI. 2006 2007

No. Particulars - -

1. Income & Revenue : 10,00,000 12,50,000

i. Income from operation(Sales)
ii. Other income
Commission Received 50,000 75,000
Discount Received 1,00,000 1,25,000
TOTAL 11,50,000 14,50,000
2. Expenses :
i. Purchase (Cost of goods sold) 8,00,000 9,00,000
ii. Changes in Inventory (assumed no
changes)
iii. Finance Cost
iv. Others Expenses
Operating Expenses 2,00,000 3,00,000
Non-Operating Expenses 50,000 75,000
TOTAL 10,50,000 12,75,000
3. Net Profit (1-2) 1,00,000 1,75,000
Comment briefly on results. (5marks)

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7. [2009] From the following figures of the balance sheet of X & CO., prepare ComparativeBalance

Sheet.

PARTICULARS AMOUNT(2007) AMOUNT(2008)

I. EQUITY AND LIABILITIES
1 Shareholders fund
ĂͿ Share capital: Preference
shares capitalEquity shares 2,00,000 1,00,000
capital
4,00,000 5,00,000

ďͿ Reserve and surplus

40,000 70,000
Non-current liabilities
a) Long term borrowings10%
2) debentures
Long terms loan 1,50,000 1,00,000
2,00,000 3,00,000
3) Current liabilities 80,000 1,20,000
TOTAL
10,70,000 11,90,000

II.
ASSETS
Non Current assets
5,70,000 6,30,000
ĂͿ Fixed assets

ďͿ Non current investments 2,20,000 2,50,000

Current assets 2,80,000 3,10,000

TOTAL
10,70,000 11,90,000

(5marks)

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8. [2010] Following data(profit and loss account) are available from sikdar associates 2006 and 2007
. You are required to prepare a Comparative on-Size Statement of Income, under 40 % tax net, as
per modern approach.

(‘in 000s)

SI. 2006 2007

No. Particulars - -

1. Income & Revenue : 1,250 1,540

i. Income from operation(Net Sales)
ii. Other income
Dividend of investment 46 55
Bank Interest 4 5
TOTAL 1,300 1,600
2. Expenses :
i. Purchase (Cost of goods sold) 600 750
ii. Changes in Inventory (assumed no
changes)
iii. Finance Cost Interest
on debt 40 50
iv. Others Expenses
Hire Charges (Computers etc.) 180 200
Selling 120 300
Distribution overhead 200 100
TOTAL 1,140 1,400
3. Net Profit (1-2) 160 200
Comment briefly on results.

(5marks)

9. [2010] – Prepare a common size balance sheet from the given data.

Balance sheet of Hyundai Ltd. As at 31.03.09 and 31.3.10

(‘ in lakh)

PARTICULARS AMOUNT(2009) AMOUNT(2010)

I. EQUITY AND LIABILITIES
1 Shareholders fund
a) Share capital:
Equity capital (10Each) 3.00 3.50

b) reserve and surplus

General Reserve 1.00 1.25
Capital Reserve - 0.15
Profit and loss a/c 0.50 1.00

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2. Non-current liabilities
a) long term borrowings
3) 9% debentures 1.50 1.00
Current liabilities
a) trade payable 0.80 1.10
creditors
b) short term provisions
provision for bad debt 0.25 0.15
provision for tax 0.40 0.52
c) other current liabilities
outstanding expenses .15 .13
TOTAL 7.60 8.80
II.
1. ASSETS
Non Current assets
a) Fixed assets
i) tangible assets
land & building 5.00 6.00
Less: Depreciation 1.10 1.30
NET 3.90 4.70

b) Non-current investments
investments 1.60 1.80

Current assets
a) Inventories 1.00 1.30
stock
b) Trade receivables
debtors 0.85 0.72
d) other current assets
preliminary expenses 0.15 0.16
prepaid Expenses 0.10 0.12
TOTAL 7.60 8.80

(5marks)

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10. [2011] From the following Profit and loss account, prepare a commom-size Income statement
of

Tata motors ltd and also make a brief comment on the profitability

SI. 2006 2007

No. Particulars - -

1. Income & Revenue : 1,00,000 1,20,000

i. Income from operation(Net Sales)
TOTAL 1,00,000 1,20,000
2. Expenses :
i. Purchase (Cost of goods sold) 72000 80,000
ii. Other expenses
Office & Administration expenses 8,000 10,000
Selling Expenses 3,000 2,500
TOTAL 83,000 92,500

3. Net Profit (1-2) 17,000 27,500

(5marks)

ϭϯ͘ [2012] – From the ‘trend analysis’ supplied below, prepare a comparative statement ofcurrent assets
in

Absolute value taking 2003 as the base year

Trend percentage(%) Corresponding value of FixedAssets(2006)

2004 2005 2006

90 80 70 14,000 - Goodwill

125 160 180 5,40,000 - Land & Building

110 125 160 4,80,000 - Plant

120 300 230 4,60,000 - Machinery

105 115 120 60,000 - Furniture

(5marks)

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ϭϰ͘ [2013]. From the information given below prepare a Comparative Income:

2004 2005
- -
Sales 1,20,000 1,35,800
Sales Return 5,200 3,800
Cost of goods sold 80,000 84,000
Operating expenses 12,000 9,000
Income Tax 50% 50%
(5marks)

ϭϱ͘ [2014] From the following figures of the balance sheet of Aditya Gupta Ltd., preparecommon size

2012 & 2013

PARTICULARS AMOUNT(2012) AMOUNT(2013)

I. EQUITY AND LIABILITIES
1 Shareholders fund
ĂͿ Share capital: Preference
shares capitalEquity shares 1,00,000 1,00,000
capital
2,00,000 2,00,000

ďͿ Reserve and surplus

3,00,000 4,00,000

Non-current liabilities
2) a) Long term borrowings
Secured Loan Unsecured 2,00,000 2,00,000
Loan 1,00,000 1,00,000
3) Current liabilities 1,00,000 2,00,000
TOTAL 12,00,000
10,00,000

ASSETS
II.
Non Current assets
ĂͿ Fixed assets 3,00,000 4,00,000

ďͿ Non current investments

2,00,000 2,00,000
Current assets
TOTAL 5,00,000 6,00,000

10,00,000 12,00,000

(5marks)

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17. [2015] – Find the sales of the base period and other missing data from the following figures
of

XYZ Ltd.

Year 2010 2011 2012 2013 2014

Sales (‘000): 1,980 ? 2,805 3,140 3,798

Trend (%) 110 130 ? ? ?
(5 Marks)

18. [2016]. From the information given below prepare a Comparative Income:

2014 2015
- -
Sales 3,75,000 5,25,000
Cost of goods sold 3,00,000 3,75,000

Administrative,selling and 22,500 30,000

Distribution expense
Other Income 7,500 15,000
Income Tax 50% 50%
(5marks)

19. [2017] – From the trend % supplied below, prepare a comparative statement of currentassets in

Absolute value taking 2013 as the base year

Trend percentage Corresponding value of current Assets

2014 2015 2016 2016

120 130 150 7,200 - Debtors

130 140 200 13,600 - Raw Materials

160 220 250 8,000 - WIP

175 250 300 9,000 - Cash & Bank

110 150 175 3,500 - Finished goods

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20. [2018] With the help of following information for the year ended 31.03.2017,prepare a

Common-size Income Statement.

Particulars Small bros.

Office and Selling and Distribution Expenses 60,000

Other Income 20,000
Total Cost of Sales: 75% of Net Sales - 1,20,000
Net Profit before Tax

21. [2019] With the help of following information, prepare a comparative Income Statement.

Particulars Year ended Year ended

31.03.2017 31.03.2018
Sales 15,00,000 18,00,000
Cost of goods sold 9,60,000 10,80,000
Gross Profit 5,40,000 7,20,000
Operating expenses 3,00,000 3,36,000

Profit before tax 2,40,000 3,84,000

22. [2020] From the following information, prepare a comparative income statement:
Particulars 31.03.2019 Rs 31.03.2020 Rs
Revenue from operations (Sales) 3,75,000 5,25,000
Other Income 20,000 30,000
Cost of Goods sold 3,90,000 3,90,000
Administration Expenses 1,25,000 15,000
Selling and Distribution Expenses 10,000 15,000
Income Tax 30% 30%

23. [2021] Find the sales of the base year and other missing data from the following figures of Zap Ltd.
Year 2016 2017 2018 2019 2020
Sales ( ‘000) 47,200 ? 63,200 72,800 ?
Trend (%) 118 134 ? ? 213

24. [2022] From the following information prepare a 'Common size Income Statement for the year ended 31st March
2022:
Office, Selling and Distribution Expenses ₹1,20,000

Total Cost of Sales 75% of net sales

Net profit before tax ₹2,40,000

Other income ₹40,000

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