22FINANCIAL STATEMENT ANALYSIS UNIT I: Financial Accounting: Definition-Concept and conventions- Contents of profit and loss account

and Balance Sheet of companies – Depreciation: Concept and methods (theory) – Preparation of final accounts (simple problems) UNIT II: Financial Statement Analysis- Meaning – Objectives- Rearranging Financial Statements for Analysis – Techniques of Financial Statement Analysis : Comparative Statement Analysis, Common Size Statements, Trend Analysis – Ratio Analysis – Classification of Ratio – Problems on computation and interpretation of Accounting Ratios – Du Pont Analysis – Advantages – Disadvantages of Ratio Analysis . UNIT III: Fund Flow Statement Analysis – Preparation of Statement of change in working capital – Computation of fund from operation and preparation of fund flow statement – Cash flow statement: computation of cash from operations – Preparation of cash flow statementDistinction between Fund flow statements and cash flow statement- Advantages of Fund flow statement and Cash flow statement UNIT IV: Cost Accounting – Distinction of Financial Accounting and Cost Accounting –Cost Terminology: Cost, Cost centre, Cost unit – Elements of cost – Preparation of Cost Sheet – Marginal Costing: Concepts – Break Even Point Analysis, Contribution, PV Ratio, Margin of Safety – Problems on Applications of Break Even concept. UNIT V: Budget – Budgeting and budget control – Types of Budgets – Preparation of Flexible and fixed budgets, Master budget and Cash budget. Questions: 60% of the questions shall be problems 40% of the questions shall be theory based

REFERENCE: 1. Ramachandran.N., Ram Kumar Kakan, “Financial Accounting for Management”, The TATA Mc Graw Hill Publishing Company Ltd, New Delhi, 2006 2. Ronald W Hilton, Michael N Maher, Frank H Shelto, “Cost Management strategies for Business Decision” The TATA Mcgraw Hill Publishing Company Ltd, New Delhi, 2004 3. Maheswari.S.N, “Principles of Management Accounting”, Sulton Chand and sons Limited, New Delhi 4. Gerald I White, Ashinpaul C.Sondhi, Dov Fried, “The Analysis and Use Financial Statements”, Wiley Student Edition, Third Edition, new Delhi 2004 5. J.C.Varshney, Accounting and Financial Analysis, Wisdom Publications, New Delhi, 2nd edition, 2004

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