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3.32 Analysis of Financial Statements—CBSE XII
Illustration 29.
Grow More Ltd.
COMPARATIVE BALANCE SHEET as at 31st March, 2023 and 2024
Particulars Note 31st March, 31st March, Absolute Percentage
No. 2023 2024 Change Change
(Increase or (Increase or
` ` Decrease) (`) Decrease) (%)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 2,00,000 3,00,000 1,00,000 50.00
(b) Reserves and Surplus 2,00,000 2,00,000 ... ...
2. Non-Current Liabilities
Long-term Borrowings 40,000 1,60,000 1,20,000 300.00
3. Current Liabilities
Trade Payables 60,000 1,00,000 40,000 66.67
Total 5,00,000 7,60,000 2,60,000 52.00
II. ASSETS
1. Non-Current Assets
(a) Property, Plant and Equipment 3,60,000 5,60,000 2,00,000 55.55
(b) Non-Current Investments 40,000 40,000 ... ...
2. Current Assets
(a) Trade Receivables 80,000 1,20,000 40,000 50.00
(b) Cash and Cash Equivalents 20,000 40,000 20,000 100.00
Total 5,00,000 7,60,000 2,60,000 52.00

Additional Information:
1. Trade Receivables as at 31st March, 2022 were ` 60,000.
2. Revenue from Operations (Net Sales) for the year ended 31st March, 2023 and
31st March, 2024 is ` 20,00,000 and ` 30,00,000 respectively. Net Credit Revenue
from Operations being 70% of Revenue from Operations in both the years.
From the above Comparative Balance Sheets and additional information, compute Trade
Receivables Turnover Ratio.
Solution:
Trade Receivables Turnover Ratio 31st March, 2023 31st March, 2024
Credit Revenue from Operations ` 14,00,000 ` 21,00,000
Average Trade Receivables = ` 60,000  ` 80,000 = ` 80,000  ` 1,20,000
2 2
= 20 Times = 21 Times
Credit Revenue from Operations = 70% of ` 20,00,000 = 70% of ` 30,00,000
= ` 14,00,000 = ` 21,00,000
Illustration 30.
Current Ratio of a company is 2.5 : 1. State, giving reasons, which of the following would
improve, decline or not change the ratio:
(i) Repayment of long-term loans;
(ii) Goods purchased on credit of 3 months;