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Model Test Papers M.433

Or

(a) Inventory Turnover Ratio and Trade Receivables Turnover Ratio.
(b) The objective of computing Current Ratio is to measure the ability of the enterprise
to meet its short-term obligations as and when they become due for payment.
(c) Operating Profit Ratio = 100 – Operating Ratio = 100 – 90 = 10%
Operating Profit = Revenue from Operations × Operating Profit Ratio
= ` 20,00,000 × 10/100 = ` 2,00,000
Net Profit = Operating Profit + Non-operating Income – Non-Operating Expenses
= ` 2,00,000 + ` 1,10,000 – ` 10,000 = ` 3,00,000
Net Profit ` 3,00,000
Net Profit Ratio = ¥ 100 = ¥ 100 = 15%.
Revenue from Operations ` 20,00,000
22. COMPARATIVE STATEMENT OF PROFIT AND LOSS OF ROSE PRODUCTS LTD.
for the years ended 31st March, 2017 and 2018
Particulars Note No. 31st March, 31st March, Absolute Percentage
2017 (`) 2018 (`) Change (`) Change (%)
I. Revenue from Operations 11,00,000 14,00,000 3,00,000 27.27
II. Add: Other Incomes 3,00,000 4,00,000 1,00,000 33.33
III. Total Revenue (I + II) 14,00,000 18,00,000 4,00,000 28.57
IV. Less: Expenses 12,00,000 11,00,000 (1,00,000) (8.33)
V. Profit before Tax (III – IV) 2,00,000 7,00,000 5,00,000 250.00
VI. Less: Tax @ 50% 1,00,000 3,50,000 2,50,000 250.00
VII. Profit after Tax (V – VI) 1,00,000 3,50,000 2,50,000 250.00

Net Profit after Tax ` 3,50,000
Net Profit Ratio = ¥ 100 = ¥ 100 = 25%.
Revenue from Operations ` 14,00,000
Or
(a) To analyse (increase/decrease) each item of Revenue and Expense in absolute
amount as well as in percentage, taking the data of previous year as base.

(b) 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 30,00,000 100 100
II. Other Income 4,00,000 3,60,000 20 12
III. Total Revenue (I + II) 24,00,000 33,60,000 120 112
IV. Expenses 12,00,000 21,00,000 60 70
V. Profit before Tax (III – IV) 12,00,000 12,60,000 60 42
VI. Tax @ 50% 6,00,000 6,30,000 30 21
VII. Profit after Tax (V – VI) 6,00,000 6,30,000 30 21