Calculation of income tax:
For 2015 - 16: 2,00,000 \(\times\) 20% = Rs 40,000
For 2016 - 17: 3,20,000 \(\times\) 50% = Rs.1,60,000

Yes, common size statement is also known as 100 % statement. Since in this statement, all items are expressed as percentage of the base item i.e. revenue from operations in case of common size statement of profit and loss or total assets in case of common size balance sheet.

There is no conflict between both the analysis because both serve different purposes. Horizontal analysis is used for intra-firm comparison and vertical analysis is used for inter-firm comparison. In real practice, both the analysis are complementary in nature.

Yes, financial statement analysis is a post-mortem of the business transactions as it assesses the operational ability, profitability and financial soundness of the business.

Financial statement analysis is comparison of the various items in the financial statements by establishing and evaluating relationship among them. So that, it gives a better understanding of the performance and financial status of the business concern.

(i) Intra-firm comparison is comparison within the organisation among different departments, division etc
(ii) Inter-firm comparison is comparison of one firm with other firm or firms in the industry.

Trend analysis refers to the study of movement of figures over a period. The trend may be increasing trend or decreasing trend or irregular. When data for more than two years are to be analysed, it may be difficult to use comparative statement.

Working capital statement or schedule of changes in working is prepared to disclose net change in working capitals on two specific dates (generally two balance sheet dates). It is prepared from current assets and current liabilities
Working Capital = current Assets - Current Liabilities.

Following are the commonly used tools of financial statement analysis
(i) Comparative statement
(ii) Common-size statement
(iii) Trend analysis
(iv) Funds flow analysis
(v) Cash flow analysis