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Model Test Papers M.59
PART B

ANALYSIS OF FINANCIAL STATEMENTS

18. What is meant by ‘Cash Flow from Investing Activities’? (1)

19. JK Ltd. purchased machinery on deferred payment basis. During the year ended 31st
March, 2018 the company paid an intalment of ` 4,00,000 which included interest of
` 40,000. While preparing Cash Flow Statement, under which type of activities will
this payment be classified? Also, mention the amount involved in each activity. (1)
20. (a) Which item is assumed to be 100 in case of Common-size Statement of Profit
and Loss?
(b) From the information, given below, prepare a Comparative Statement of Profit
and Loss:

Particulars Note No. 31st March, 2018 31st March, 2017
Revenue from Operations ` 3,50,000 ` 2,00,000
Purchases of Stock-in-Trade ` 2,00,000 ` 1,00,000
Cost of Revenue from Operations 70% of Revenue from Operations 60% of Revenue from Operations
Employee Benefit Expenses ` 7,350 ` 4,000
Income Tax 45% 45%

Or
(a) Which item is assumed to be 100 on the assets side in case of Common-size
Balance Sheet?

(b) From the following information, prepare a Comparative Statement of Profit and
Loss of V Ltd. for the year ended 31st March, 2018:
Particulars 31st March, 2018 31st March, 2017
Revenue from Operations ` 20,00,000 ` 10,00,000
Cost of Materials Consumed ` 15,00,000 ` 6,00,000
Other Expenses 12% of Cost of Materials Consumed 10% of Cost of Materials Consumed
Tax rate 40% 30%

(1 + 3)
21. From the following, calculate ‘Gross Profit Ratio’ and ‘Working Capital Turnover Ratio’:
Particulars `
Revenue from Operations 30,00,000
Cost of Revenue from Operations 20,00,000
Current Assets 6,00,000
Current Liabilities 2,00,000
Paid-up Share Capital 5,00,000
(4)