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    Common Size Statement Analysis

    Uploaded by

    Revati Shinde
    The document provides the balance sheets for A Ltd. as of March 31, 2019 and March 31, 2020. It asks the reader to prepare a common size balance sheet by expressing each line item as a percentage of total assets or liabilities/equity for both years. It also provides an income statement for 2019 and 2020 and asks the reader to convert it to a common size statement and interpret any changes between the two years in light of conditions in 2017.

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    © All Rights Reserved
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    Common Size Statement Analysis

    Uploaded by

    Revati Shinde
    61 views2 pages
    The document provides the balance sheets for A Ltd. as of March 31, 2019 and March 31, 2020. It asks the reader to prepare a common size balance sheet by expressing each line item as a percentage of total assets or liabilities/equity for both years. It also provides an income statement for 2019 and 2020 and asks the reader to convert it to a common size statement and interpret any changes between the two years in light of conditions in 2017.

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    Common Size Statement

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    The document provides the balance sheets for A Ltd. as of March 31, 2019 and March 31, 2020. It asks the reader to prepare a common size balance sheet by expressing each line item as a percentage of total assets or liabilities/equity for both years. It also provides an income statement for 2019 and 2020 and asks the reader to convert it to a common size statement and interpret any changes between the two years in light of conditions in 2017.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    61 views2 pages

    Common Size Statement Analysis

    Uploaded by

    Revati Shinde
    The document provides the balance sheets for A Ltd. as of March 31, 2019 and March 31, 2020. It asks the reader to prepare a common size balance sheet by expressing each line item as a percentage of total assets or liabilities/equity for both years. It also provides an income statement for 2019 and 2020 and asks the reader to convert it to a common size statement and interpret any changes between the two years in light of conditions in 2017.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    COMMON SIZE STATEMENT ANALYSIS

    Problem: - 1

    Following are the Balance Sheets of A Ltd. as on 31/3/2019 and 31/3/2020.

    31/3/201 31/3/202 31/3/201 31/3/202


    Liabilities Assets
    9 0 9 0
    Equity Capital 1,00,000 1,65,000 Fixed Assets 1,20,000 1,75,000
    Preference
    50,000 75,000 Stock 20,000 25,000
    Capital
    Reserves 10,000 15,000 Debtors 50,000 62,500
    P & L A/c 7,500 10,000 B/R 10,000 30,000
    Prepaid
    BOD 25,000 25,000 5,000 6,000
    Expenses
    Creditors 20,000 25,000 Cash at Bank 20,000 26,500
    Provision for
    10,000 12,500 Cash in Hand 5,000 15,000
    Taxation
    Proposed
    7,500 12,500
    Dividend
    2,30,000 3,40,000 2,30,000 3,40,000

    Prepare Common Size Balance Sheet.

    Problem: - 2
    Covert the following income statement into Common Size Statement and
    interpret the changes in 2018 in the light of conditions of 2017.

    Particulars 2019 2020


    Gross Sales 15,300 18,360
    Less: Return 300 350
    Net Sales 15,000 18,010
    Less: Cost of Goods Sold 9,100 10,125
    Gross Profit 5,900 7,885
    Less: Operating Expenses
     Administration Expenses 1,500 1,700
     Sales Expenses 3,000 3,300
    Total Expenses 4,500 5,000
    Income from Operations 1,400 2,885
    Add: Non-operating Income 150 200
    Total Income 1,550 3,085
    Less: Non-operating Expenses 200 300
    Net Profit 1,350 2,785

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