5. CHAPTER 3 : Common Size Statements, Assignment # 4 with Answers
Common Size Statements, Assignment # 4 with Answers
Task
i) In case of common size statement, figures of previous years are taken as base for comparison.
True or false? Give reason
a) cross-sectional analysis b)trend analysis
c) dividend decision analysis d) debt analysis (choose the correct alternative)
Task
Do Assignment # 4 on Common Size Statements right now in class.
Prepare Common size statement of Profit and Loss of X Ltd .
and Y Ltd. for the year ending 31st March 2020.
X Ltd Y ltd
Revenue from operations 2000000 1000000
Other Income 200000 50000
Cost of materials consumed 60%of RFO 50% of RFO
Employee benefit expenses 140000 80000
Tax rate 30% 30%
Ques. 2
Prepare a common size balance sheet.
P ltd. Q ltd
I. Equity and Liabilities
1. Shareholder's Funds
(a) Share capital 1500000 1200000
(b) Reserves and surplus 500000 500000
2. Non current liabilities
Long term borrowings 600000 500000
3.Current liabilities
Trade payables 1550000 1050000
Total
4150000 3250000
II.Assets
1.Non current assets
(a)Fixed assets
tangible assets 1400000 800000
(ii)intangible assets 1600000 1200000
(b)Non current investments 1000000 1000000
2. Current assets
Inventories 150000 250000
Total 4150000 3250000
Answers to Assignment # 4
i) Provision for employee benefits is shown under the subhead_______.
(Fill in the blank)
Ans.1
Common size statement of profit and loss of X ltd and Y ltd
for the year ending 31st march 2020
particulars note X Ltd Y Ltd X Ltd Y Ltd
no. as a % as a %
no. as a % as a %
of RFO of RFO
I. revenue from operations 2000000 1000000 100% 100%
II. Add other incomes 200000 50000 10% 5%
III. total revenue (I+II) 2200000 1050000 110% 105%
IV. Less expenses
cost of materials consumed 1200000 500000 60% 50%
I. revenue from operations 2000000 1000000 100% 100%
II. Add other incomes 200000 50000 10% 5%
III. total revenue (I+II) 2200000 1050000 110% 105%
IV. Less expenses
cost of materials consumed 1200000 500000 60% 50%
employee benefit expenses 140000 80000 7% 8%
total expenses 1340000 580000 67% 58%
V. profit before tax 860000 470000 43% 47%
VI. less tax 258000 141000 12.9% 14.1%
VII. profit after tax(V- VI) 602000 329000 30.1% 32.9%
total expenses 1340000 580000 67% 58%
V. profit before tax 860000 470000 43% 47%
VI. less tax 258000 141000 12.9% 14.1%
VII. profit after tax(V- VI) 602000 329000 30.1% 32.9%
Ans. 2
Common size balance sheet of P ltd & Q ltd
as at 31st march 2020
Particulars note Absolute amounts %of B /S Total
no. P ltd Q ltd P ltd Q ltd
I. Equity and Liabilities
Shareholders funds
a. share capital 1500000 1200000 36.14% 36.93%
b. reserves and surplus 500000 500000 12.05% 15.38%
Non current liabilities
a. long term borrowings 600000 500000 14.46% 15.38%
Current liabilities
a. trade payables 1550000 1050000 37.35% 32.31%
Total 4150000 3250000 100% 100%
II. Assets
Non current assets
a.fixed assets
tangible assets
plant and machinery 1400000 800000 33.73% 24.62%
intangible assets
Goodwill 1600000 1200000 38.55% 36.92%
b. non current investment
Current assets
inventories 150000 250000 3.62% 7.69%
Total 4150000 3250000 100% 100%
i) Provision for employee benefits is shown under the subhead_______.
(Fill in the blank)
ii) Debit balance in the statement of profit and loss is disclosed as negative figure under the head__________. (Fill in the blank)
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ReplyDeleteSwaraj Swarup Aggarwal,
Ma'am when was assignment 5 given? I don't remember having done an assignment 5.
It was given for homework after school hours as 3rd period got cancelled..
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ReplyDeleteSiddhant 12 B
Good morning ma'am shashwat singh 12 B
ReplyDeleteTask1:
Delete¡)false; as comparative size statement, figures of previous years are taken as base for comparison.
¡¡) {B}trend analysis
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ReplyDeleteAkhil Sharma 12-B
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ReplyDeletePrince Joseph 12 B
Good morning Ma'am .This is Nakul Kapur from class 12-B.
ReplyDelete1)The answer is False as in common size statements ,we are taking the the current year figure as a base for that particular year.
2)The answer is b) trend analysis.
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12-A
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ReplyDeleteIsaac samuel 12-B
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ReplyDeleteswayam khandelwal 12-B
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ReplyDeleteParv jain 12A
Good morning ma'am, kanav this side
ReplyDelete1) false
2) b) trend analysis
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ReplyDeleteAddhyan popli
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ReplyDeleteAns1: false as there is no base year in common size statements, (100 is used as base percentages for both the years)
Ans 2: cross section analysis
Tanush goel
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ReplyDelete1)The answer is False as in common size statements ,we are taking the the current year figure as a base for that particular year.
2)The answer is b) trend analysis.
GAURANG
Good morning ma'am. Jai this side
ReplyDeleteAns-1)False
2)Trend analysis
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ReplyDelete1) false
2) cross section analysis
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ReplyDelete1)The answer is False as in common size statements ,we are taking the the current year figure as a base for that particular year.
2)The answer is b) trend analysis.
Ansh
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ReplyDeleteAns1: false as there is no base year in common size statements.
Ans2:cross section analysis
Jagrit Gomber 12A
Good morning mam..Svastik
ReplyDeletea)false
b)trend analysis
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ReplyDeleteAns1: false as there is no base year in common size statements.
Ans2:cross section analysis
Tanmay jain
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ReplyDeleteAns1: false as there is no base year in common size statements.
Ans2:cross section analysis
Avukt guptaa
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ReplyDeleteJohn P Varghese
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ReplyDeleteAryan Narang
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ReplyDeleteRohan maggo
A)False
ReplyDeleteB)cross section analysis
Rohan maggo
1)The answer is False as in common size statements ,we are taking the the current year figure as a base for that particular year.
ReplyDelete2)The answer is b) trend analysis.
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ReplyDelete1)The answer is False as in common size statements ,we are taking the the current year figure as a base for that particular year.
2)The answer is b) trend analysis.
Agam Madan
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ReplyDelete1)The answer is False as in common size statements ,we are taking the the current year figure as a base for that particular year.
2)The answer is cross section analysis
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ReplyDeleteSADYANTA MALIK
ANS. 1.)The answer is False as in common size statements ,we are taking the the current year figure as a base for that particular year.
ANS. 2.)A cross sectional analysis
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ReplyDeleteA) False
B) cross section analysis
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ReplyDeletePranav Sarna
1)It's false because we take the figure of the year we are calculating and not a specific year value
2) b) Trend Analysis
Sorry ma'am the answer to the second question is a) Cross Sectional Analysis
DeleteGood Afternoon ma'am
ReplyDelete(i)false
(ii)trend analysis
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ReplyDeleteAns1: false as there is no base year in common size statements.
Ans2:cross section analysis
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ReplyDeleteAnit Terrance Abner
Ans1: false as there is no base year in common size statements.
Ans2:cross section analysis
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ReplyDeleteGood afternoon ma'am Ans. False . 2. A cross section analysis
ReplyDeleteGOOD AFTERNOON MAAM
ReplyDeleteTANISH GARG 12A
ANS 1 FALSE AS THERE IS NO BASE YEAR IN COMMON SIZE STATEMENTS
ANS 2 CROSS SECTION ANALYSIS
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ReplyDeleteDivit Chugh
Ans:1)FALSE as we take the current year figure as the base for that particular year.
2)cross section analysis (A)
Hello..Dear Boys..answers' are:
ReplyDeletei) False, because in common size income statement Revenue from operations (RFO) and in Balance sheet totals of Asset/ Liabilities are taken as base
ii) cross sectional analysis
Good Afternoon Ma'am
ReplyDeleteAnswer: (i). False. This is because in common size statements ,we are taking the current year figure as a base for that particular year.
(ii). a) cross-section analysis
Samarth Singh
12-A
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ReplyDeleteVansh Taneja
Ans:1)FALSE as we take the current year figure as the base for that particular year.
2)cross section analysis (A)
Good morning ma'am sreyansh this side :1)FALSE as we take the current year figure as the base for that particular year.
ReplyDelete2)cross section analysis (A)
Make a note: Base year figures are taken in the comparative Statements and not in the common size..
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ReplyDeleteAbhyuday Agrawal 12A
Ans:
i) False, because in common size income statement Revenue from operations and in Balance sheet totals of Asset/ Liabilities are taken as base
ii) cross sectional analysis
Advantage of logging in late😃
DeleteMake a note: previous year figures are the base figures for comparative statements.
ReplyDeletegood afternoon ma'am
ReplyDeleteJayan Bhatia
ans:1.False because in commom size income statement revenue from operations and in balancesheet totals of assests/liabilities is taken as base
2.cross sectional analysis