ANALYSIS OF FINANCIAL STATEMENTS

COMPARATIVE STATEMENT COMMON SIZE STATEMENT

Income Statement

Balance Sheet

Income statement

Balance Sheet

COMPARATIVE INCOME STATEMENT

Particulars Sales Less:- Sales Returns Net Sales Less:- Cost Of Goods Sold Gross Profit Less:- Operating Expenses Administration Expenses Selling Expenses Office Expenses Distribution Expenses Operating Profit Less:- Non Operating Expenese Interest Income Tax Finance Expense Goodwill Written off Net Profit Previous Year XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX Current Year XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX Increase / Decrease Amount % XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX

Particulars

COMPARATIVE BALANCE SHEET Previous Current Year Year

Increase / Decrease Amount %

Assets:Current Assets (stock, debtors, prepaid expenses, cash, bank, bills receivable) Total Current Assets (A) Fixed Assets Total Fixed Assets (B) Total Assets (A + B) Liabilities & Capital:Current Liabilities (creditors, bills payable, outstanding expense) Total Current Liabilities (D) Long Term Liabilities (Debentures, mortgage loan, public debt) Total Long Term Liabilities (E) Capital & Reserves (share capital & Reserves) Total Share holders Funds (F) Total Liabilities & Capital (D+E+F)

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COMPARATIVE INCOME STATEMENT

Particulars Sales Less:- Sales Returns Net Sales Less:- Cost Of Goods Sold Gross Profit Less:- Operating Expenses Administration Expenses Selling Expenses Office Expenses Distribution Expenses Operating Profit Less:- Non Operating Expenese Interest Income Tax Finance Expense Goodwill Written off Net Profit Previous Year (amt) XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX Previous Year (%) XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX Current Year (amt) XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX Current Year (%) XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX

Particulars

COMPARATIVE BALANCE SHEET Previous Previous Year (amt) Year (%)

Current Year (amt)

Current Year (%)

Assets:Current Assets (stock, debtors, prepaid expenses, cash, bank, bills receivable) Total Current Assets (A) Fixed Assets Total Fixed Assets (B) Total Assets (A + B) Liabilities & Capital:Current Liabilities (creditors, bills payable, outstanding expense) Total Current Liabilities (D) Long Term Liabilities (Debentures, mortgage loan, public debt) Total Long Term Liabilities (E) Capital & Reserves (share capital & Reserves) Total Share holders Funds (F) Total Liabilities & Capital (D+E+F)

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Questions for Working out:1) The income statements of a company are given for the years ending on 31st December 2008 and 2009. Re-arrange the figures in a comparative form and study the profitability position of the concern:Particulars 2008 2009 Net sales 7,85,000 9,00,000 Cost of goods sold 4,50,000 5,00,000 Operating expenses:General & administration expense 70,000 72,000 Selling expense 80,000 90,000 Non-operating expenses:Interest paid 25,000 30,000 Income tax 70,000 80,000 2) From the following balance sheets of X Ltd,. You are required to prepare sheet:Balance Sheet as on 31st December Liabilities 2007 2008 Assets Equity Share Capital 4,00,000 4,00,000 Land & Building Preference Share capital 3,00,000 3,00,000 Plant & Machinery Reserves 2,00,000 2,45,000 Stock 8% Debentures 1,00,000 1,50,000 Debtors Bills Payable 50,000 75,000 Cash Sundry Creditors 2,50,000 3,50,000 13,00,000 15,20,000 a comparative balance

2007 4,00,000 4,00,000 2,00,000 2,00,000 1,00,000 13,00,000

2008 3,70,000 4,10,000 3,00,000 3,00,000 1,40,000 15,20,000

3) Following is the P & L A/c of Shekar Fibres Ltd., for the year ending 31 / 12 / 2006 and 2007. Your are required to prepare common size income statement:Particulars 2006 2007 Gross Sales 7,25,000 8,15,000 Less:- Sales Returns 25,000 15,000 Net sales 7,00,000 8,00,000 Cost of goods sold 5,95,000 6,15,000 Operating expenses:General & administration expense 23,000 24,000 Selling expense 12,700 12,500 Non-operating expenses 1,750 1,940 Other incomes 1,200 8,050 4) From the following balance sheets of X Ltd,. You are required to prepare sheet:Balance Sheet as on 31st December Liabilities 2008 2009 Assets Share capital 2,00,000 2,50,000 Fixed Assets Reserves 80,000 1,00,000 Investments Debentures 1,00,000 80,000 Stock Creditors 70,000 95,000 Debtors Bills Payable 50,000 75,000 Bills receivable Bank 5,00,000 6,00,000 a comparative balance

2008 1,00,000 50,000 65,000 80,000 95,000 1,10,000 5,00,000

2009 1,20,000 60,000 75,000 90,000 1,05,000 1,50,000 6,00,000