Beruflich Dokumente
Kultur Dokumente
Q.1 Prepare Common size statement in following format for Income statement and
Balance sheet and give your comments for all the three years for Income statement and
Balance sheet.
Common Size Income Statement %
2012–13 2013–14 2014–15
Total revenue 100 100 100
Cost of goods sold
Gross profit
Operating expenses:
General, administration, and selling expenses
Depreciation
Interest expenses (on borrowings)
Profit before tax (PBT)
Tax @ 30%
Profit after tax (PAT)
Q.2 Prepare Trend Analysis of Income statement and Balance sheet in the following
format taking 2012-13 as base year.
Also write the comment for important items in Income statement and Balance sheet
after doing the analysis in the following format
Trends are an important tool for financial analysis of the company. Trends for year 2 and year 3 are
compared, taking year 1 as the base.
TREND ANALYSIS OF INCOME STATEMENT (%)
Q.3 Compute the following ratios and compare with the industry average in the
following format and give the interpretation of each ratio.
An example is given below:
Ratio and its Year 1 Calculation Year 2 Calculation Year 3 Calculation Industry
formulae Average of Ratio
Given in Exhibit
39iy
Current ratio 660,000 3,100,000 4,456,000 2.30
260,000 = 2.54 1,728,000 = 1.79 2,780,000 = 1.6
Write the interpretation
Q.4 Based on various ratio computations and their comparison with industry
ratios, would you, as the loan officer, grant the loan request?
Q.5 What areas of improvement can you suggest for the future?