List Assignments of Chapter-4 Analysis of Financial Statements in Lession Company Accounts and Analysis of Financial Statements in Subject Accounting in 12th Commerce Class

Chapter-4 Analysis of Financial Statements Assignments 1

From the following data relating to the liabilities side of balance sheet of Madhuri Ltd., as on 31st March 2006, you are required to calculate trend percentages taking 2002 as the base year.

(Rs in lakhs)
Liabilities	2002	2003	2004	2005	2006
Share capital	100	125	130	150	160
Reserves & Surplus	50	60	65	75	80
12% Debentures	200	250	300	400	400
Bank overdraft	10	20	25	25	20
Profit & Loss A/c	20	22	28	26	30
Sundry Creditors	40	70	60	70	75

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Chapter-4 Analysis of Financial Statements Assignments 2

Calculate trend percentages from the following figures of ABC Ltd., taking 2000 as base and interpret them.

Year	Sales	Stock	Profit before tax
2000	1,500	700	300
2001	2,140	780	450
2002	2,365	820	480
2003	3,020	930	530
2004	3,500	1160	660
2005	4000	1200	700

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Chapter-4 Analysis of Financial Statements Assignments 3

From the following particulars extracted from P&L A/c of Prashanth Ltd., you are required to calculate trend percentages

Year	Sales Rs	Wages Rs	Bad Debts Rs	Profit after tax Rs
2003	3,50,000	50,000	14,000	16,000
2004	4,15,000	60,000	26,000	24,500
2005	4,25,000	72,200	29,000	45,000
2006	4,60,000	85,000	33,000	60,000

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Chapter-4 Analysis of Financial Statements Assignments 4

The accompanying balance sheet and profit and loss account related to SUMO Logistics Pvt. Ltd. Convert these into Common Size Statements.

Previous Year = 2005, Current Year = 2006

Rs'000
	Previous Year	Current Year
Liabilities
Equity Share Capital (of Rs 10 each)	240	240
General Reserve	96	182
Long Term loans	182	169.5
Creditors	67	52
Outstanding expenses	6	-
Other Current liabilities	9	6.5
Total Liabilities	600	650
Assets
Plant assets net of accumulated less depreciation	402	390
Cash	54	78
Debtors	60	65
Inventories	84	117
Total Assets	600	650

Income Statement for the year ended
Rs'000
	Previous Year	Current Year
Gross Sales	370	480
Less : Returns	20	30
Net Sales	350	450
Less : Cost of goods sold	190	215
Gross Profit	160	235
Less : Selling general and administration expenses	50	72
Operating profit	110	163
Less : Interest expenses	20	17
Earnings before tax	90	146
Less : Taxes	45	73
Earnings After Tax	45	73

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Chapter-4 Analysis of Financial Statements Assignments 5

Following are the balance sheets of Reddy Ltd. as on 31 March 2003 and 2004.

Liabilities	2004	2005	Assets	2004	2005
Share Capital	2,400	3,600	Land & buildings	1,620	1,040
Reserves & Surplus	1,872	2,124	Plant & Machinery	1,860	4,716
Debentures	300	600	Furniture & Fixtures	54	108
Long-term Debt	900	1,530	Other Fixed Assets	120	180
Bills Payable	1,530	702	Long-terms Loans	276	354
Other Current Liabilities	42	60	Cash & Bank Balances	708	60
			Bill Receivable	1,254	1,120
			Stock	960	780
			Prepaid Expenses	18	18
			Other Current Assets	174	240
	7,044	8,616		7,044	8,616

Analyse the financial position of the company with the help of the Common Size Balance Sheet.

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Chapter-4 Analysis of Financial Statements Assignments 6

Convert the following Income Statement into Common Size Statement and interpret the changes in 2005 in the light of the conditions in 2004.

	2004 Rs	2005 Rs
Gross Sales	30,600	36,720
Less : Returns	600	700
Net Sales	30,000	36,020
Less : Cost of Goods Sold	18,200	20,250
Gross Profit	11,800	15,770
Less : Operating Expenses
Administration Expenses	3,000	3,400
Sales Expenses	6,000	6,600
Total Expenses	9,000	10,000
Income from Operations	2,800	5,770
Add : Non-operating Income	300	400
Total Income	3,100	6,170
Less : Non-operating Expenses	400	600
Net Profit	2,700	5,570

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Chapter-4 Analysis of Financial Statements Assignments 7

The following are the balance sheets of Devi Co. Ltd at the end of 2002 and 2003. Prepare a Comparative Balance Sheet and study the financial position of the concern.

Liabilities	2002 Rs	2003 Rs	Assets	2002 Rs	2003 Rs
Equity Capital	1,20,000	1,85,000	Fixed Assets	1,40,000	1,95,000
Preference Capital	70,000	95,000	Stock	40,000	45,000
Reserves	30,000	35,000	Debtors	70,000	82,500
P&L	17,500	20,000	Bills Receivables	20,000	50,000
Bank overdraft	35,000	45,450	Prepaid Expenses	6,000	8,000
Creditors	25,000	35,000	Cash at bank	40,000	48,500
Provision for Taxation	15,000	22,500	Cash in hand	5,000	29,000
Proposed Dividend	8,500	20,050
	3,21,000	4,58,000		3,21,000	4,58,000

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Chapter-4 Analysis of Financial Statements Assignments 8

The following are the Balance Sheets of Mohan Ltd., at the end of 2004 and 2005.

					Rs'000
Liabilities	2004	2005	Assets	2004	2005
Equity Share Capital	400	600	Land & buildings	270	170
Reserves & Surplus	312	354	Plant & Machinery	310	786
Debentures	50	100	Furniture & Fixtures	9	18
Long-term Loans	150	255	Other Fixed Assets	20	30
Accounts Payable	255	117	Loans and Advances	46	59
Other Current Liabilities	7	10	Cash and Bank	118	10
			Account Receivable	209	190
			Inventory	160	130
			Prepaid Expenses	3	3
			Other current Assets	29	40
	1,174	1,436		1,174	1,436

Prepare a Comparative Balance Sheet and study the financial position of the company.

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Chapter-4 Analysis of Financial Statements Assignments 9

What do you mean by Common Size Statements?

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Chapter-4 Analysis of Financial Statements Assignments 10

Explain how common size statements are prepared giving an example.

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Chapter-4 Analysis of Financial Statements Assignments 11

What are Comparative Financial Statements?

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Chapter-4 Analysis of Financial Statements Assignments 12

What do you understand by analysis and interpretation of financial statements? Discuss their importance.

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Chapter-4 Analysis of Financial Statements Assignments 13

Bring out the importance of Financial Analysis

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Chapter-4 Analysis of Financial Statements Assignments 14

What is the importance of comparative statements? Illustrate your answer with particular reference to comparative income statement.

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Chapter-4 Analysis of Financial Statements Assignments 15

Explain the meaning of Analysis and Interpretation.

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Chapter-4 Analysis of Financial Statements Assignments 16

Explain the usefulness of trend percentages in interpretation of financial performance of a company.

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Chapter-4 Analysis of Financial Statements Assignments 17

Distinguish between Vertical and Horizontal Analysis of financial data.

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Chapter-4 Analysis of Financial Statements Assignments 18

Describe the different techniques of financial analysis and explain the limitations of financial analysis.

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Chapter-4 Analysis of Financial Statements Assignments 19

From the following information of Narsimham Company Ltd., prepare a Comparative Income Statement for the years 2004-2005

Particulars	2004 Rs	2005 Rs
Gross Sales	7,25,000	8,15,000
Less : Returns	25,000	15,000
Net Sales	7,00,000	8,00,000
Cost of Goods Sold	5,95,000	6,15,000
Gross Profit	1,05,000	1,85,000
Other Expenses
Selling & distribution Expenses	23,000	24,000
Administration Expenses	12,700	12,500
Total Expenses	35,700	36,500
Operating Income	69,300	1,48,500
Other Income	1,200	8,050
	70,500	1,56,550
Non Operating Expenses	1,750	1,940
Net Profit	68,750	1,54,610

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Chapter-4 Analysis of Financial Statements Assignments 20

List the techniques of Financial Statement Analysis.

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Chapter-4 Analysis of Financial Statements

Chapter-4 Analysis of Financial Statements Assignments 1

Chapter-4 Analysis of Financial Statements Assignments 2

Chapter-4 Analysis of Financial Statements Assignments 3

Chapter-4 Analysis of Financial Statements Assignments 4

Chapter-4 Analysis of Financial Statements Assignments 5

Chapter-4 Analysis of Financial Statements Assignments 6

Chapter-4 Analysis of Financial Statements Assignments 7

Chapter-4 Analysis of Financial Statements Assignments 8

Chapter-4 Analysis of Financial Statements Assignments 9

Chapter-4 Analysis of Financial Statements Assignments 10

Chapter-4 Analysis of Financial Statements Assignments 11

Chapter-4 Analysis of Financial Statements Assignments 12

Chapter-4 Analysis of Financial Statements Assignments 13

Chapter-4 Analysis of Financial Statements Assignments 14

Chapter-4 Analysis of Financial Statements Assignments 15

Chapter-4 Analysis of Financial Statements Assignments 16

Chapter-4 Analysis of Financial Statements Assignments 17

Chapter-4 Analysis of Financial Statements Assignments 18

Chapter-4 Analysis of Financial Statements Assignments 19

Chapter-4 Analysis of Financial Statements Assignments 20

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