Conceptual Assignment (30 Marks)

All questions to be attempted in excel only showing the calculations and

formulae used.
The Balance Sheet and Profit and Loss Statement for Revolve Ltd are as follows
Revolve Ltd Balance Sheet
Fiscal year ends in March. INR in millions
ASSETS
Current assets
Cash
Cash and cash equivalents
Short-term investments
Total cash
Debtors
Inventories
Deferred income taxes
Prepaid expenses
Other current assets
Total current assets
Non-current assets
Property, plant and equipment
Gross property, plant and equipment
Accumulated Depreciation
Net property, plant and equipment
Equity and other investments
Other long-term assets
Total non-current assets
TOTAL ASSETS
LIABILITIES AND SHAREHOLDER’S EQUITY
Liabilities
Current liabilities
Short-term debt
Trade Creditors
Taxes payable
Accrued liabilities
Other current liabilities
Total current liabilities
Non-current liabilities
Long-term debt
Deferred taxes liabilities
Pensions and other benefits
Minority interest
Other long-term liabilities
Total non-current liabilities
TOTAL LIABILITIES
Shareholders’ Equity
Share Premium
Retained earnings
Treasury shares
Accumulated other comprehensive income
Total Shareholders’ Equity
TOTAL LIABILITIES AND SHAREHOLDER’S EQUITY
he calculations and

nt for Revolve Ltd are as follows

2019 2018

29,95,000 29,39,400 #VALUE!

18,21,600 15,11,400
48,16,600 44,50,800
21,15,900 83,64,000
23,88,000 20,61,000
9,67,600
7,96,300 13,33,300
77,16,200 10,32,000
178,33,000 182,08,700

236,49,000 227,76,600
-134,51,900 -130,36,200
101,97,100 97,40,400
105,25,500 100,71,400
101,93,800 94,06,200
309,16,400 292,18,000
487,49,400 474,26,700

92,44,100 85,21,000
25,66,400 23,89,500
2,23,600 3,43,300
31,37,800 27,26,100
21,47,000 21,44,400
173,18,900 161,24,300

99,11,500 97,72,000
14,23,700 20,46,000
9,05,000 9,04,900
6,68,200 8,61,400
10,07,700 9,71,600
139,16,100 145,55,900
312,35,000 306,80,200

8,81,000 9,45,200
176,01,000 167,94,200
-16,08,200 -16,03,200
6,40,900 6,10,800
175,14,700 167,47,000
487,49,700 474,27,200
Revolve Ltd Profit and Loss Statement
Fiscal year ends in March. INR in millions 2019
Sales 275,97,000
COGS 227,34,000
Gross profit 48,63,000
Expenses
General and administrative 17,20,800
Selling and Distribution 8,60,400
Power & fuel costs 2,86,800
Total operating expenses 28,68,000
Operating Profit 19,95,000
Interest Expense 29,300
Other income 2,28,800
Profit before taxes and Depreciation 21,94,500
Depreciation 86,500
Profit Before Taxes 21,08,000
Income Tax 8,43,200
Net income/ Net Profit 13,51,300
Required
1. Prepare common size Profit and Loss statement and Balance Sheet for the two years as given above for Revolve Ltd
2. The cash collection/conversion cycle (CCC) of any company is Days Inventory (Outstanding)
ratio+ Days Receivable (Outstanding) ratio - Days Payable (Outstanding) ratio or Days Inventory
ratio+ Days Receivable ratio - Days Payable ratio. Calculate the CCC for Revolve Ltd (Hint: Read the study material prov
3. Calculate the following ratios for both years for the company and briefly comment on the health and the performance of the
- Current Ratio
- Return on equity
- Debt Equity ratio
- Financial Leverage
- Net Profit Margin
 2018
284,03,000
226,05,000
57,98,000

17,65,800
8,82,900
2,94,300
29,43,000
28,55,000
35,400
1,64,800
29,84,400
71,300
29,13,100
11,65,240
18,19,160

s given above for Revolve Ltd. (10 m)

Outstanding)

Read the study material provided to locate the required formulas) (5 m)

h and the performance of the company for the past 2 years based on your results:- (15 m)