Financial Statement Analysis – ATKT Maximum Marks – 60

Note : All Questions are Compulsory

1) What is the importance of Cash Flow Statement in Financial Analysis of a company? What
are the different sources of cash flow. Elaborate each one of them. (15 Marks)
2) Define :
a. Accrued Expenses
b. Deferred Tax assets
c. EPS
d. P/E
e. LIFO in Inventory (10 Marks)
3) What are the steps under indirect method of cash flow from operating activities? Take an
example and show it stepwise. (10 Marks)
4) What do we mean by non-cash expenses? Explain with example(s). (10 Marks)
5) What is the link between balance sheet, income statement and cash flow statements. Which
are the few important ratios to measure profitability.Explain any two .( 15 Marks)