Page 170 - afs12

PTP.10 Analysis of Financial Statements—CBSE XII

Answers to Practice Test Paper 2

1. It will be shown under the head ‘Financing Activity’.
2. It will be shown under ‘Investing Activity’, since these were not purchased for resale.
3.
Item Main Head Sub-head
(i) Share Application Money Current Liabilities Other Current Liabilities
(ii) Debentures with maturity Current Liabilities Short-term Borrowings
period of 12 months
(iii) Computer Software Non-current Assets Property, Plant and Equipment and Intangible Assets
—Intangible Assets
(iv) Preference Share Capital Shareholders’ Funds Share Capital
4. (a) (i) To assess financial performance.
(ii) To assess financial position.
(b) Inventory Turnover Ratio = 10 Times.
5. Gross Profit Ratio – 2024 – 32%; and 2023 – 29.14%.
6. (a) (i) Investing (ii) No flow of Cash
(iii) Financing (iv) Investing
(b) Cash Used in Financing Activities = ` 86,000.