FINANCIAL STATEMENT ANALYSIS

Assignment 3 Pages

Bengaluru City University

Bachelor of Business Administration

Contributed by

Prajwal Hallale

Corpoarte Accounting and Reporting, II Semester BBA, Bangalore Central University

Vinutha T.N, Assistant Professor, MES Institute of Management
1

FINANCIAL STATEMENT ANALYSIS
Assignment Questions
1. From the following information, interpret the results of operations using trend ratios.
(Amounts are in lakhs)
Particulars
2015-16
2016-17
2017-18
2018-19
Revenue from Operations
200
180
240
300
Cost of Goods Sold
120
120
140
160
Other expenses
20
20
30
40
Income Taxes
30
20
35
50
Profit after Tax
30
20
35
50

2. From the following information, interpret the results of operations of X Ltd. using
trend ratios. (Amounts are in lakhs)

3. Prepare Comparative Statement of Profit and Loss and Balance Sheet from the
following data and comment.
Statement of Profit and Loss for the year ending 31
st
March (Rs. in ‘000)
Particulars
2018
2019
Revenue from Operations
3,000
2,800
Cost of Goods Sold
2,100
1,800
Other Expenses
700
600
Finance Cost
250
200
Other Income
25
20
Net Profit / Loss
(25)
220

Balance Sheet as on 31
st
March, 2017 (Rs. in ‘000)
Particulars
2018
2019
Equity and Liabilities

Equity Share Capital
200
300
8% Preference Share Capital
100
150
6 % Debentures
100
80
Year
Revenue
from
Operations
Employee
Benefit
expenses
Other
Expenses
Purchases
2014-15
1,24,000
43,000
10,300
88,000
2015-16
1,31,000
43,000
11,600
93,000
2016-17
1,28,000
46,000
11,900
97,000
2017-18
1,33,000
48,000
11,100
1,01,000
2018-19
1,30,000
50,000
12,000
97,000
Page 1
Corpoarte Accounting and Reporting, II Semester BBA, Bangalore Central University

Vinutha T.N, Assistant Professor, MES Institute of Management
2

Reserves and Surplus
82
100
Sundry Creditors
75
90
Outstanding Expenses
43
30

600
750
Assets

Land and Building
180
240
Plant and Machinery
200
190
Furniture
100
110
Stock
80
130
Sundry Debtors
30
50
Cash and Bank Balances
10
30

600
750

4. The Income Statement of Vinyas Ltd. is given for year ending on 31
st
March, 2018 and
2019. You are required to prepare a Common Size Statement of Profit and Loss and
Comment.
Statement of Profit and Loss for the year ending 31
st
March
Particulars
2018
2019
Revenue from Operations
7,00,000
8,00,000
Cost of Sales
5,95,000
6,15,000
Other Expenses
23,000
24,000
Employee Benefit Expenses
12,700
12,500
Finance Cost
1,750
1,940
Other Income
70,500
1,56,550
Net Profit / Loss
68,750
1,54,610

5. From the following Balance Sheet of Sagar and Co. and Dhoni and Co. as on 31
st

March, 2019, you are required to prepare the Common Size Balance Sheet and compare
the financial position of the two companies.
Balance Sheet as on 31
st
March, 2019
Particulars
Sagar and Co.
Dhoni and Co.
Equity and Liabilities

Equity Share Capital
2,50,000
3,00,000
10% Preference Share Capital
2,00,000
3,00,000
12 % Debentures
50,000
1,50,000
Reserves and Surplus
90,000
1,20,000
Sundry Creditors
1,50,000
3,50,000
Dividend Provision
60,000
70,000
Bank Overdraft
-
1,10,000

8,00,000
14,00,000
Page 2
Corpoarte Accounting and Reporting, II Semester BBA, Bangalore Central University

Vinutha T.N, Assistant Professor, MES Institute of Management
3

Assets

Land and Building
80,000
1,20,000
Plant and Machinery
3,00,000
6,25,000
Investments
1,00,000
2,00,000
Stock
1,75,000
1,75,000
Sundry Debtors
75,000
1,45,000
Cash and Bank Balances
70,000
1,35,000

8,00,000
14,00,000

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