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Model Test Papers M.277

Net Profit before Interest and Tax
(b) Return on Investment = × 100
Capital Employed
` 2,50,000
= × 100 = 25%.
` 10,00,000
22. COMPARATIVE STATEMENT OF PROFIT AND LOSS
for the years ended 31st March, 2017 and 2018
Particulars Note 31st March, 31st March, Absolute Percentage
No. 2017 2018 Change Change
` ` ` %
I. Revenue from Operations 12,00,000 16,80,000 4,80,000 40.00
II. Expenses
(a) Cost of Materials Consumed 6,00,000 13,44,000 7,44,000 124.00
(b) Other Expenses 1,20,000 1,68,000 48,000 40.00
Total Expenses 7,20,000 15,12,000 7,92,000 110.00
III. Profit before Tax (I – II) 4,80,000 1,68,000 (3,12,000) (65.00)
Less: Tax 2,40,000 84,000 (1,56,000) (65.00)
IV. Profit after Tax 2,40,000 84,000 (1,56,000) (65.00)
Or
COMMON-SIZE STATEMENT OF PROFIT AND LOSS
for the years ended 31st March, 2017 and 2018
Particulars Note No. Absolute Amounts Percentage of
Revenue from Operations

31st March, 31st March, 31st March, 31st March,
2017 (`) 2018 (`) 2017 (%) 2018 (%)
I. Revenue from Operations 20,00,000 25,00,000 100 100
II. Expenses:
(a) Employee Benefit Expenses 17,00,000 20,00,000 85 80
(b) Other Expenses 4,00,000 6,00,000 20 24
Total Expenses 21,00,000 26,00,000 105 104
III. Profit before Tax (I – II) (1,00,000) (1,00,000) (5) (4)
IV. Less: Tax (Note) ... ... ... ...
V. Profit after Tax (1,00,000) (1,00,000) (5) (4)

Note: Tax will not be levied because of loss.
23. CASH FLOW STATEMENT for the year ended 31st March, 2018
Particulars ` `
A. Cash Flow from Operating Activities
Net Profit before Tax and Extraordinary Activities (WN 1) 48,000
Add: Non Cash and Non-operating Expenses:
Depreciation on Plant and Machinery (WN 3) 50,000
Interest on Debentures 7,500
Premium on Redemption of Debentures 2,500
Less: Gain (Profit) on Sale of Machinery (13,000)
Operating Profit before Working Capital Changes 95,000