State how does financial statement analysis ignore price level changes.

3

(a)

Prepare a comparative Statement of Profit and Loss from the following information:

Particulars	Note No.	2011-12	2010-11
Revenue from Operations		50,000	40,000
Cost of Material Consumed		35,000	30,000
Other Expenses		3,000	2,500
Other Income		2,000	3,000
Income Tax		7,500	4,750

3

(a)

With the help of the following information obtained from the books of Raj Slik Mils, Prepare a Comparative statement of Profit and Loss for the year ended 31.03.2012.

Particulars	Note  No.	2011-12	2010-11
Revenue from Operations		300% of cost of Material Consumed	200% of cost of Material Consumed
Cost of Material Consumed		Rs12,00,000	Rs.10,00,000
Other Expenses		10% of Material Consumed	5% of Material Consumed
Income Tax		50%	50%

3

(a)

Both horizontal and Vertical analysis are complementary in nature.Do you agree?

3

(a)

For what purpose, comparative financial statements are prepared?

3

(a)

What is the main objective of preparing comparative balance sheet?

3

(a)

Common size statement is also known as 100% statement.Do you agree?

3

(a)

IUf selling and distribution expenses have increased from Rs 1,00,000 to Rs 2,00,000, then by how much will it increase or decrease in percentage form? 

3

(a)

Give the Main Heading and Sub-Heading of Assets of the Balance sheet of a company as per the Revised Schedule VI of the companies Act.1956.

3

(a)

List any three items that can be shown as contingent Liabilities in a company's Balance sheet.

3

(a)

How is a Company's balance sheet different from that of a Partnership firm? Give Two point only.

3

(a)

A company has a current ratio of 4:1 and Quick ratio is 2.5;1. Assuming that the inventories are Rs 22500, find out total current assets and current liabilities.

3

(a)

A company made credit sales of Rs. 7,20,000 during the year. If the collection period is 50 days and the year is assumed to be of 360 days. Calculate
a) Average Debtors b) Debtors Turnover ratio c) Opening and Closing Debtors if the closing Debtors are Rs. 10,000 more than the opening Debtors.

3

(a)

Calculate Inventory Turnover Ratio
Sales = Rs.4,00,000 Average stock = Rs. 55,000 Gross Loss ratio = 10%

3

(a)

Calculate Current Asset Turnover ratio if

Particulars	Amt(Rs.)
Cost of goods sold	Rs. 7,50,000
Gross profit	Rs. 2,10,000
Total Assets	Rs. 3,00,00
Capital employed	Rs. 3,00,000
Working capital	Rs. 60,000

3

(a)