Analyze

the P&L
and
identify
the
problem
areas
Analyze
the P&L
and
identify
the
problem
areas
Analyze
the P&L
and
identify
the
problem
areas
Analyze
the P&L
and
identify
the
problem
areas
Analyze
the B/S
and
identify
the
problem
areas
Analyze
the B/S
and
identify
the
problem
areas
Analyze
the B/S
and
identify
the
problem
areas
Analyze
the B/S
and
identify
the
problem
areas
 Financial Analysis Tools and Techniques

• Vertical Analysis

• Horizontal Analysis

• Ratio Analysis
Vertical Analysis
Horizontal Analysis
 Ratio
Analysis
Types of Ratios
For financial ratios, please refer the Excel Template
Question 1

Perform Vertical and horizontal analysis

Question2
Question 3
Question 3
Challenging Question – Ratios to Financial Statements
Question
The following data of XYZ Limited is available for the year ended June 30, 2020

Retained Earning (opening) 147,000

Non current Assets 420,000
PAT 45,000
Expenses 270,000
Gross Profit 25%
Quick Ratio 2.5
Days sales in inventory (based on COS) 45
Days sales in receivable 18
Shareholder equity to total liability 4
Tax 40%
Share Capital (par value 10) (15,000 shares of Rs. 21 each)
No. of days to be taken as 360

Requirement
Prepare income statement and statement of financial position of XYZ limited at Jun 30, 2020