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4.36                                         Analysis of Financial Statements—CBSE XII
                     Capital Employed:

                       1.  Liabilities Approach = Share Capital + Reserves and Surplus + Long-term Borrowings
                                             = ` 13,00,000 – ` 2,50,000 + ` 5,00,000 = ` 15,50,000.

                     2.     Assets Approach = Property, Plant and Equipment + Non-current Investments (Trade) +
                                               Working Capital (i.e., Current Assets – Current Liabilities)
                                             = ` 11,20,000 + ` 2,00,000 + (` 1,70,000 + ` 1,40,000
                                               + ` 1,20,000 – ` 1,00,000 – ` 70,000 – ` 30,000) = ` 15,50,000.


                     Illustration 35.
                                                          Matrix Ltd.
                             COMMON-SIZE STATEMENT OF PROFIT & LOSS for the years ended 31st March, 2024 and 2025
                     Particulars                       Note     Absolute Amounts   Percentage of Revenue from
                                                       No.                               Operations
                                                             31st March,   31st March,   31st March,   31st March,
                                                              2024 (`)   2025 (`)    2024 (`)   2025 (`)
                       I.  Revenue from Operations           16,00,000   20,00,000   100.00     100.00
                       II.  Employees Benefit Expenses        8,00,000   10,00,000    50.00      50.00
                         Other Expenses                       2,00,000   1,00,000     12.50       5.00
                      III.  Total Expenses                   10,00,000   11,00,000    62.50      55.00
                      IV.  Profit before Tax (I – III)        6,00,000   9,00,000     37.50      45.00
                     From the above, compute Operating Ratio.

                     Solution:
                           Operating Ratio            31st March, 2024          31st March, 2025
                          Operating Cost                 ` 10,00,000               ` 11,00,000  100
                     Revenue from Operations  100     =  ` 16,00,000  100      =  `  20,00,000
                                                       =  62.50%                 =  55%
                     Illustration 36.
                     From the following Balance Sheet of Moon Ltd. as at 31st March, 2025, prepare a
                     Common-size Balance Sheet and compute Proprietary Ratio:
                     Particulars                                                      Note No.   31st March,
                                                                                                2025 (`)
                      I.  EQUITY AND LIABILITIES
                         1.  Shareholders’ Funds
                            (a)  Share Capital                                                  60,00,000
                            (b)  Reserves and Surplus                                            8,00,000
                         2.  Non-Current Liabilities
                            Long-term Borrowings                                                20,00,000
                         3.  Current Liabilities
                            Short-term Borrowings                                               12,00,000
                         Total                                                                 1,00,00,000
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