Higher National Diploma in Accountancy

HNDA 2nd Year, Second Semester Examination – 2014

2202 – Computer Application for Accountancy
Lecturer: W.M.J.M. Thilakasiri
Suggested Solutions
Question No 01

Following balances have been extracted from the books of Maya PLC as at 31 st March 2013 &
2014.
Rs. ’000 Rs. ‘000
Account Title Account ID
31/03/2013 31/03/2014
Sales 6000 400,000.00 613,500.00
Insurance Expenses 8050 2,000.00 15,000.00
Rent Expenses 8100 1,000.00 2,000.00
Salaries & Wages 8150 25,000.00 28,000.00
Administrative Expenses 8000 30,000.00 40,000.00
Selling & Distribution Expenses 8500 25,000.00 50,000.00
Financial Expenses 9500 10,000.00 15,000.00
Purchases 5100 80,000.00 90,000.00
Telephone Charges 8200 1,500.00 2,000.00
Advertising 8550 2,300.00 2,500.00
Bad Debts 8600 1,200.00 1,400.00
Commission Received 6100 3,000.00 3,500.00
Opening Inventory 5000 24,000.00 35,000.00
Interest Expenses 9550 6,000.00 7,000.00
Land & buildings (W.D.V) 1000 400,000.00 550,000.00
Office Equipment (W.D.V) 1100 75,000.00 50,000.00
Motor Vehicles (W.D.V) 1200 150,000.00 130,000.00
Depreciation – Office Equipment 8250 30,000.00 25,000.00
Depreciation – Motor Vehicle 8650 20,000.00 20,000.00
Goodwill 1900 80,000.00 80,000.00
Closing Inventory 5200 35,000.00 25,000.00
Prepaid Expenses 2100 10,000.00 8,000.00
Cash at Bank 2900 25,000.00 35,000.00
Stated Capital 3000 555,000.00 526,900.00
General Reserve 3500 40,000.00 45,000.00
Account Receivables 2200 14,000.00 16,000.00
Account Payables 4100 23,000.00 26,000.00
Debentures 4000 20,000.00 20,000.00
Investments 1950 15,000.00 15,000.00
Income Tax Expenses 9950 14,000.00 18,000.00

You are required to create a suitable spreadsheet model for;

a.       The Statements of Financial Performance for the period ended 31st March, 2013 & 2015.
b.      Statement of Financial Position as at 31st March 2013 and 2014.
(You are supposed to use maximum number of formulas and proper financial statement structures)
Higher National Diploma in Accountancy
HNDA 2nd Year, Second Semester Examination – 2014
2202 – Computer Application for Accountancy
Lecturer: W.M.J.M. Thilakasiri
Suggested Solutions
Answer No 01

First, You should arrange particulars in ascending order.

Following balances have been extracted from the books of Maya PLC as at
31st March 2013 & 2014.
Rs. ’000 Rs. ‘000
Account Title Account ID
31/03/2013 31/03/2014
Account Payables 4100 23,000.00 26,000.00
Account Receivables 2200 14,000.00 16,000.00
Administrative Expenses 8000 30,000.00 40,000.00
Advertising 8550 2,300.00 2,500.00
Bad Debts 8600 1,200.00 1,400.00
Cash at Bank 2900 25,000.00 35,000.00
Closing Inventory 5200 35,000.00 25,000.00
Commission Received 6100 3,000.00 3,500.00
Debentures 4000 20,000.00 20,000.00
Depreciation – Motor Vehicle 8650 20,000.00 20,000.00
Depreciation – Office Equipment 8250 30,000.00 25,000.00
Financial Expenses 9500 10,000.00 15,000.00
General Reserve 3500 40,000.00 45,000.00
Goodwill 1900 80,000.00 80,000.00
Income Tax Expenses 9950 14,000.00 18,000.00
Insurance Expenses 8050 2,000.00 15,000.00
Interest Expenses 9550 6,000.00 7,000.00
Investments 1950 15,000.00 15,000.00
Land & buildings (W.D.V) 1000 400,000.00 550,000.00
Motor Vehicles (W.D.V) 1200 150,000.00 130,000.00
Office Equipment (W.D.V) 1100 75,000.00 50,000.00
Opening Inventory 5000 24,000.00 35,000.00
Prepaid Expenses 2100 10,000.00 8,000.00
Purchases 5100 80,000.00 90,000.00
Rent Expenses 8100 1,000.00 2,000.00
Salaries & Wages 8150 25,000.00 28,000.00
Sales 6000 400,000.00 613,500.00
Selling & Distribution Expenses 8500 25,000.00 50,000.00
Stated Capital 3000 555,000.00 526,900.00
Telephone Charges 8200 1,500.00 2,000.00

Part - a,
Maya PLC
Statements of Financial Performance
For the period ended 31st March, 2013 & 2015
Rs. ’000 Rs. ‘000
Account Title Account ID
31/03/2013 31/03/2014
Sales 6000 400,000.00 613,500.00
Cost of Sales
Opening Inventory 5000 24,000.00 35,000.00
Purchases 5100 80,000.00 90,000.00
104,000.00 125,000.00
Closing Inventory 5200 (35,000.00) (25,000.00)
69,000.00 100,000.00
Gross Profit 331,000.00 513,500.00

Other Income
Commission Received 6100 3,000.00 3,500.00
334,000.00 517,000.00
Administrative-Expenses
Insurance Expenses 8050 2,000.00 15,000.00
Rent Expenses 8100 1,000.00 2,000.00
Salaries & Wages 8150 25,000.00 28,000.00
Administrative Expenses 8000 30,000.00 40,000.00
Telephone Charges 8200 1,500.00 2,000.00
Depreciation – Office Equipment 8250 30,000.00 25,000.00
(89,500.00) (112,000.00)
Selling and Distribution-Expenses
Selling & Distribution Expenses 8500 25,000.00 50,000.00
Advertising 8550 2,300.00 2,500.00
Bad Debts 8600 1,200.00 1,400.00
Depreciation – Motor Vehicle 8650 20,000.00 20,000.00
(48,500.00) (73,900.00)
Finance & Other Expenses
Financial Expenses 9500 10,000.00 15,000.00
Interest Expenses 9550 6,000.00 7,000.00
(16,000.00) (22,000.00)
Profit before Tax 180,000.00 309,100.00
Income Tax Expenses 9950 (14,000.00) (18,000.00)
Profit after Tax 166,000.00 291,100.00

Part - b,
Maya PLC
Statement of Financial Position
As at 31st March 2013 and 2014
Rs. ’000 Rs. ‘000
Account Title Account ID
31/03/2013 31/03/2014
Non-Current Assets
Land & buildings (W.D.V) 1000 400,000.00 550,000.00
Office Equipment (W.D.V) 1100 75,000.00 50,000.00
Motor Vehicles (W.D.V) 1200 150,000.00 130,000.00
Goodwill 1900 80,000.00 80,000.00
Investments 1950 15,000.00 15,000.00
720,000.00 825,000.00
Current Assets
Closing Inventory 5200 35,000.00 25,000.00
Prepaid Expenses 2100 10,000.00 8,000.00
Account Receivables 2200 14,000.00 16,000.00
Cash at Bank 2900 25,000.00 35,000.00
84,000.00 84,000.00
Total Assets 804,000.00 909,000.00

Equity & Liabilities

Stated Capital 3000 555,000.00 526,900.00
Retained Earnings 166,000.00 291,100.00
General Reserve 3500 40,000.00 45,000.00
761,000.00 863,000.00
Non-Current Liabilities
Debentures 4000 20,000.00 20,000.00
20,000.00 20,000.00
Current Liabilities
Account Payables 4100 23,000.00 26,000.00
23,000.00 26,000.00
Total Equity & Liabilities 804,000.00 909,000.00
Higher National Diploma in Accountancy
HNDA 2nd Year, Second Semester Examination – 2017
2202 – Computer Application for Accountancy
Lecturer: W.M.J.M. Thilakasiri
Suggested Solutions
Question No 01

Following balances are extracted from the books of ABC Company Ltd as at
March 31, 2016 and 2017.

31/03/2016 31/03/2017
Account Name Accounting Code
Rs. ‘000 Rs. ‘000
Sales 10,000 9,000
Returns Inwards 22 8
Interest Received 60 80
Opening Inventory 100 160
Purchases 400 600
Returns Outwards 6 10
Closing Inventory 160 100
Selling Expenses 30 28
Depreciation-Motor Vehicle 120 100
Bad Debts 150 200
Administrative Expenses 120 120
Electricity 160 180
Telephone 130 388
Depreciation-Building 100 96
Insurance 120 240
Interest Expenses 60 50
Sundry Expenses 200 240
Amortization of Goodwill 60 90
Income Tax Expenses 400 2,500
Land & Building (W.D.V) 3,000 3,000
Motor Vehicle (W.D.V) 2,000 4,000
Furniture & Fittings (W.D.V) 1,400 5,458
Goodwill 1,996 1,996
Accounts Receivables 180 60
Bank 1,600 1,150
Cash in Hand 1,200 1,000
Stated Capital – Ordinary Shares 1,000 1,000
Stated Capital - Preference Shares 600 600
Retained Profit at the Beginning of Year 300 ?
General Reserves 400 700
Debentures (10%) 400 800
Bank Loan 300 500
Accounts Payables 100 160
Wages Payable 110 80
Provision for Income Tax 80 80
VAT Payable 120 140
Provision for Doubtful Debts 12 10

Based on the instructions given below, you are required to create a suitable spreadsheet
model for,
i). The Statement of Income for the year ended on March 31, 2016 and 20
ii). Statement of Financial Position as at March 31, 2016 and 2017
Instructions:
- Use Look up function for creating the above spreadsheet model.
- Define the accounting code between the ranges given below.
o Income 1000 – 1100
o Expenditure 1500 – 1900
o Assets 2000 – 2200
o Capital & Equity 2500 – 2700
iii). Using the statement that you created above, prepare a vertical analysis
report for the Statement of Income (Use maximum formulas).
iv). Calculate the following Ratios for the year 2016

a). Current Ratio

b). Quick Assets Ratio
c). Gross Profit Ratio
d). Stock Turnover Ratio
Higher National Diploma in Accountancy
HNDA 2nd Year, Second Semester Examination – 2017
2202 – Computer Application for Accountancy
Lecturer: W.M.J.M. Thilakasiri
Suggested Solutions
Answer No 01

Following balances are extracted from the books of ABC Company Ltd as at March 31,
2016 and 2017.

Account Name Accounting Code 31/03/2016 31/03/2017 List List

Rs. ‘000 Rs. ‘000 Income 1000 – 1100
Sales 1000 10,000 9,000 Income 1000 – 1100 Expenditure 1500 – 1900
Returns Inwards 1001 22 8 Income 1000 – 1100 Assets 2000 – 2200
Interest Received 1002 60 80 Income 1000 – 1100 Capital & Equity 2500 – 2700
Opening Inventory 2000 100 160 Assets 2000 – 2200
Purchases 1500 400 600 Expenditure 1500 – 1900
Returns Outwards 1501 6 10 Expenditure 1500 – 1900
Closing Inventory 2001 160 100 Assets 2000 – 2200
Selling Expenses 1502 30 28 Expenditure 1500 – 1900
Depreciation-Motor Vehicle 1503 120 100 Expenditure 1500 – 1900
Bad Debts 1504 150 200 Expenditure 1500 – 1900
Administrative Expenses 1505 120 120 Expenditure 1500 – 1900
Electricity 1506 160 180 Expenditure 1500 – 1900
Telephone 1507 130 388 Expenditure 1500 – 1900
Depreciation-Building 1508 100 96 Expenditure 1500 – 1900
Insurance 1509 120 240 Expenditure 1500 – 1900
Interest Expenses 1510 60 50 Expenditure 1500 – 1900
Sundry Expenses 1511 200 240 Expenditure 1500 – 1900
Amortization of Goodwill 2002 60 90 Assets 2000 – 2200
Income Tax Expenses 1512 400 2,500 Expenditure 1500 – 1900
Land & Building (W.D.V) 2003 3,000 3,000 Assets 2000 – 2200
Motor Vehicle (W.D.V) 2004 2,000 4,000 Assets 2000 – 2200
Furniture & Fittings (W.D.V) 2005 1,400 5,458 Assets 2000 – 2200
Goodwill 2006 1,996 1,996 Assets 2000 – 2200
Accounts Receivables 2007 180 60 Assets 2000 – 2200
Bank 2008 1,600 1,150 Assets 2000 – 2200
Cash in Hand 2009 1,200 1,000 Assets 2000 – 2200
Stated Capital – Ordinary Shares 2500 1,000 1,000 Capital & Equity 2500 – 2700
Stated Capital - Preference Shares 2501 600 600 Capital & Equity 2500 – 2700
Retained Profit at the Beginning of Year 2502 300 ? Capital & Equity 2500 – 2700
General Reserves 2503 400 700 Capital & Equity 2500 – 2700
Debentures (10%) 2504 400 800 Capital & Equity 2500 – 2700
Bank Loan 2505 300 500 Capital & Equity 2500 – 2700
Accounts Payables 2506 120 160 Capital & Equity 2500 – 2700
Wages Payable 2507 110 80 Capital & Equity 2500 – 2700
Provision for Income Tax 2508 80 80 Capital & Equity 2500 – 2700
VAT Payable 2510 120 140 Capital & Equity 2500 – 2700
Provision for Doubtful Debts 2010 12 10 Assets 2000 – 2200

First, You should arrange particulars in ascending order.

Account Name Accounting Code 31/03/2016 31/03/2017
Rs. ‘000 Rs. ‘000
Accounts Payables 2506 100 160
Accounts Receivables 2007 180 60
Administrative Expenses 1505 120 120
Amortization of Goodwill 2002 60 90
Bad Debts 1504 150 200
Bank 2008 1,600 1,150
Bank Loan 2505 300 500
Cash in Hand 2009 1,200 1,000
Closing Inventory 2001 160 100
Debentures (10%) 2504 400 800
Depreciation-Building 1508 100 96
Depreciation-Motor Vehicle 1503 120 100
Electricity 1506 160 180
Furniture & Fittings (W.D.V) 2005 1,400 5,458
General Reserves 2503 400 700
Goodwill 2006 1,996 1,996
Income Tax Expenses 1512 400 2,500
Insurance 1509 120 240
Interest Expenses 1510 60 50
Interest Received 1002 60 80
Land & Building (W.D.V) 2003 3,000 3,000
Motor Vehicle (W.D.V) 2004 2,000 4,000
Opening Inventory 2000 100 160
Provision for Doubtful Debts 2010 12 10
Provision for Income Tax 2508 80 80
Purchases 1500 400 600
Retained Profit at the Beginning of Year 2502 300 ?
Returns Inwards 1001 22 8
Returns Outwards 1501 6 10
Sales 1000 10,000 9,000
Selling Expenses 1502 30 28
Stated Capital – Ordinary Shares 2500 1,000 1,000
Stated Capital - Preference Shares 2501 600 600
Sundry Expenses 1511 200 240
Telephone 1507 130 388
VAT Payable 2510 120 140
Wages Payable 2507 110 80

Part - i,
ABC Company Ltd
Statements of Financial Performance
For the period ended March 31, 2016 and 2017
31/03/2016 31/03/2017
Account Title Account ID
Rs. ‘000 Rs. ‘000
Sales 1000 10,000 9,000
Returns Inwards 1001 (22) (8)
9,978 8,992
Cost of Sales
Opening Inventory 2000 100 160
Purchases 1500 400 600
Returns Outwards 1501 (6) (10)
494 750
Closing Inventory 2001 (160) (100)
334 650
Gross Profit 9,644 8,342

Other Income
Interest Received 1002 60 80
9,704 8,422
Administrative-Expenses
Administrative Expenses 1505 120 120
Depreciation-Building 1508 100 96
Electricity 1506 160 180
Insurance 1509 120 240
Telephone 1507 130 388
(630) (1,024)
Selling and Distribution-Expenses
Bad Debts 1504 150 200
Depreciation-Motor Vehicle 1503 120 100
Selling Expenses 1502 30 28
(300) (328)
Finance & Other Expenses
Interest Expenses 1510 60 50
Sundry Expenses 1511 200 240
Cutting Value of Goodwill 60 30
(320) (320)
Profit before Tax 8,454 6,750
Income Tax Expenses 1512 (400) (2,500)
Profit after Tax 8,054 4,250

Part - ii,
ABC Company Ltd
Statement of Financial Position
As at March 31, 2016 and 2017
31/03/2016 31/03/2017
Account Title Account ID
Rs. ‘000 Rs. ‘000
Non-Current Assets
Land & Building (W.D.V) 2003 3,000 3,000
Motor Vehicle (W.D.V) 2004 2,000 4,000
Furniture & Fittings (W.D.V) 2005 1,400 5,458
Goodwill 2006 1,996 1,996
Amortization of Goodwill 2002 (60) (90)
8,336 14,364
Current Assets
Closing Inventory 2001 160 100
Accounts Receivables 2007 180 60
Provision for Doubtful Debts 2010 (12) (10)
Bank 2008 1,600 1,150
Cash in Hand 2009 1,200 1,000
3,128 2,300
Total Assets 11,464 16,664

Equity & Liabilities

Stated Capital - Preference Shares 2501 600 600
Stated Capital – Ordinary Shares 2501 600 600
Retained Profit at the Beginning of Year 2502 300 8,354
Profit after Tax 8,054 4,250
Retained Profit at the Ending of Year 8,354 12,604
General Reserves 2503 400 700
10,354 14,904
Non-Current Liabilities
Debentures (10%) 2504 400 800
Bank Loan 2505 300 500
700 1,300
Current Liabilities
Accounts Payables 2506 100 160
Provision for Income Tax 2508 80 80
VAT Payable 2510 120 140
Wages Payable 2507 110 80
410 460
Total Equity & Liabilities 11,464 16,664 -

Part - iii,

ABC Company Ltd

Statements of Financial Performance
For the period ended March 31, 2016 and 2017
31/03/2016 Vertical Analysis 31/03/2017 Vertical Analysis
Account Title Account ID
Rs. ‘000 as % Sales Rs. ‘000 as % Sales
Sales 1000 10,000 100.00% 9,000 100.00%
Returns Inwards 1001 (22) -0.22% (8) -0.09%
9,978 99.78% 8,992 99.91%
Cost of Sales
Opening Inventory 2000 100 1.00% 160 1.78%
Purchases 1500 400 4.00% 600 6.67%
Returns Outwards 1501 (6) -0.06% (10) -0.11%
494 4.94% 750 8.33%
Closing Inventory 2001 (160) -1.60% (100) -1.11%
334 3.34% 650 7.22%
Gross Profit 9,644 96.44% 8,342 92.69%

Other Income
Interest Received 1002 60 0.60% 80 0.89%
9,704 97.04% 8,422 93.58%
Administrative-Expenses
Administrative Expenses 1505 120 1.20% 120 1.33%
Depreciation-Building 1508 100 1.00% 96 1.07%
Electricity 1506 160 1.60% 180 2.00%
Insurance 1509 120 1.20% 240 2.67%
Telephone 1507 130 1.30% 388 4.31%
(630) -6.30% (1,024) -11.38%
Selling and Distribution-Expenses
Bad Debts 1504 150 1.50% 200 2.22%
Depreciation-Motor Vehicle 1503 120 1.20% 100 1.11%
Selling Expenses 1502 30 0.30% 28 0.31%
(300) -3.00% (328) -3.64%
Finance & Other Expenses
Interest Expenses 1510 60 0.60% 50 0.56%
Sundry Expenses 1511 200 2.00% 240 2.67%
Cutting Value of Goodwill 60 0.60% 30 0.33%
(320) -3.20% (320) -3.56%
Profit before Tax 8,454 84.54% 6,750 75.00%
Income Tax Expenses 1512 (400) -4.00% (2,500) -27.78%
Profit after Tax 8,054 80.54% 4,250 47.22%

Part - iv,
2016 2017
a). Current Ratio 7.63 5.00

Current Assets 3,128.00 2,300.00

Current Liabilities 410.00 460.00

b). Quick Assets Ratio 7.24 4.78

Cash 2,800.00 2,150.00

Account Receivables 168.00 50.00
Current Liabilities 410.00 460.00

c). Gross Profit Ratio 96.65% 92.77%

Gross Profit 9,644.00 8,342.00
Sales 10,000.00 9,000.00
Returns Inwards (22.00) (8.00)
Net Sales 9,978.00 8,992.00

d). Stock Turnover Ratio 2.57 5.00

Cost of Sales 334.00 650.00
Opening Inventory 100.00 160.00
Closing Inventory 160.00 100.00
Average Stock 130.00 130.00
Higher National Diploma in Accountancy
HNDA 2nd Year, Second Semester Examination – 2016 (New)
2202 – Computer Application for Accountancy
Lecturer: W.M.J.M. Thilakasiri
Suggested Solutions

Question No 01
Following balances are extracted from the books of Nigro Company
Limited PLC as at March 2015 & 2016.
31/03/2016 31/03/2015
Rs’000 Rs’000
Depreciation – Equipment 9,375 9,375
Depreciation – Buildings 18,750 18,750
Electricity Payable 18,750 17,813
Interest Expenses 37,500 35,625
Provision for Income Tax 39,375 31,875
Income Tax Expense 39,375 31,875
Salaries Payables 46,875 -
Accounts Payable 56,250 99,375
Accounts Receivable 93,750 137,812
Telephone Expense 118,125 129,375
Commission Expense 148,125 243,750
Opening Inventory 168,750 129,938
Closing Inventory 211,875 168,750
Bank 225,000 166,875
Electricity Expense 225,000 213,600
Interest Income 247,500 247,500
Advertising Expense 253,125 201,150
Loan Term Loan 375,000 375,000
Retained Profit B/F 821,250 693,750
Equipment W.D.V 937,500 946,875
Investment 937,500 937,500
Staff Salaries 937,500 543,750
Stated Capital – Preference Shares 1,312,500 1,312,500
Purchases 1,406,250 1,295,625
Stated Capital – Ordinary Shares 2,343,750 2,343,750
Building W.D.V 2,625,000 2,643,750
Sales 2,919,375 2,564,062

Required:
a.       Create a model to present the Statement of Income for the year ended
31st March 2015 & 2016. (Use the maximum formulas and proper
financial Statement structures).
b.      Create a model to present the Balance Sheet as at 31 st March 2015 &
2016. (Use the maximum formulas and proper financial Statement
structures).

c.       Using the statement you created above prepare a vertical analysis
report for the statement of Income cover year 2015 & 2016. (Use
maximum formulas).

Prepare a line chart to show the Gross Profit, Profit before Tax and Profit
after Tax for the years 2015 & 2016.

Calculate the following Ratios to calculate the financial statements for the
year 2016.

·         Current Ratio

·         Gross Profit Margin
·         Debtors Turnover Ratio
·         Interest Coverage Ratio
0
m
c
f

x
Higher National Diploma in Accountancy
HNDA 2nd Year, Second Semester Examination – 2016 (New)

2202 – Computer Application for Accountancy

Lecturer: W.M.J.M. Thilakasiri

Suggested Solutions

Answer No 01
Part - i,
Nigro Company Limited PLC
Statements of Financial Performance
For the period ended 31st March 2015 & 2016
31/03/2016 31/03/2015
Rs’000 Rs’000
Sales 2,919,375 2,564,062
klkoodd 2,919,375 2,564,062
Cost of Sales
Opening Inventory 168,750 129,938
Purchases 1,406,250 1,295,625
1,575,000 1,425,563
Closing Inventory (211,875) (168,750)
1,363,125 1,256,813
Gross Profit 1,556,250 1,307,249

Other Income
Interest Income 247,500 247,500
1,803,750 1,554,749
Administrative-Expenses
Depreciation – Equipment 9,375 9,375
Depreciation – Buildings 18,750 18,750
Telephone Expense 118,125 129,375
Electricity Expense 225,000 213,600
Staff Salaries 937,500 543,750
(1,308,750) (914,850)
Selling and Distribution-Expenses
Commission Expense 148,125 243,750
Advertising Expense 253,125 201,150
(401,250) (444,900)
Finance & Other Expenses
Interest Expenses 37,500 35,625
(37,500) (35,625)
Profit before Tax 56,250 159,374
Income Tax Expense (39,375) (31,875)
Profit after Tax 16,875 127,499

Part - ii,
Nigro Company Limited PLC
Statement of Financial Position
As at March 2015 & 2016
31/03/2016 31/03/2015
Rs’000 Rs’000
Non-Current Assets
Equipment W.D.V 937,500 946,875
Building W.D.V 2,625,000 2,643,750
Investment 937,500 937,500
4,500,000 4,528,125
Current Assets
Closing Inventory 211,875 168,750
Accounts Receivable 93,750 137,812
Bank 225,000 166,875
530,625 473,437
Total Assets 5,030,625 5,001,562

Equity & Liabilities

Stated Capital – Preference Shares 1,312,500 1,312,500
Stated Capital – Ordinary Shares 2,343,750 2,343,750
Retained Profit B/F 821,250 693,750
Profit After Tax 16,875 127,499
Retained Earnings 838,125 821,249
4,494,375 4,477,499
Non-Current Liabilities
Loan Term Loan 375,000 375,000
375,000 375,000
Current Liabilities
Accounts Payable 56,250 99,375
Electricity Payable 18,750 17,813
Provision for Income Tax 39,375 31,875
Salaries Payables 46,875 -
161,250 149,063
Total Equity & Liabilities 5,030,625 5,001,562

Part - iii,
Nigro Company Limited PLC
Statements of Financial Performance
For the period ended 31st March 2015 & 2016
31/03/2016 Vertical Analysis 31/03/2015 Vertical Analysis
Rs’000 as % Sales Rs’000 as % Sales
Sales 2,919,375 100.00% 2,564,062 100.00%
2,919,375 100.00% 2,564,062 100.00%
Cost of Sales
Opening Inventory 168,750 5.78% 129,938 5.07%
Purchases 1,406,250 48.17% 1,295,625 50.53%
1,575,000 53.95% 1,425,563 55.60%
Closing Inventory (211,875) -7.26% (168,750) -6.58%
1,363,125 46.69% 1,256,813 49.02%
Gross Profit 1,556,250 53.31% 1,307,249 50.98%

Other Income
Interest Income 247,500 8.48% 247,500 9.65%
1,803,750 61.79% 1,554,749 60.64%
Administrative-Expenses
Depreciation – Equipment 9,375 0.32% 9,375 0.37%
Depreciation – Buildings 18,750 0.64% 18,750 0.73%
Telephone Expense 118,125 4.05% 129,375 5.05%
Electricity Expense 225,000 7.71% 213,600 8.33%
Staff Salaries 937,500 32.11% 543,750 21.21%
(1,308,750) -44.83% (914,850) -35.68%
Selling and Distribution-Expenses
Commission Expense 148,125 5.07% 243,750 9.51%
Advertising Expense 253,125 8.67% 201,150 7.84%
(401,250) -13.74% (444,900) -17.35%
Finance & Other Expenses
Interest Expenses 37,500 1.28% 35,625 1.39%
(37,500) -1.28% (35,625) -1.39%
Profit before Tax 56,250 1.93% 159,374 6.22%
Income Tax Expense (39,375) -1.35% (31,875) -1.24%
Profit after Tax 16,875 0.58% 127,499 4.97%

Part - iii,
Year Gross Profit Profit before Tax Profit after Tax
2015 1,307,249 159,374 127,499
2016 1,556,250 56,250 16,875

Gross Profit, Profit before Tax and Profit after Tax

1,800,000
1,600,000
1,400,000
1,200,000
Values Rs.

1,000,000 Gross Profit

800,000 Profit before Tax
600,000 Profit after Tax
400,000
200,000
-
2015 2016
Years

2016
a. Current Ratio 3.29
Current Assets 530,625
Current Liabilities 161,250

b. Gross Profit Margin 53.31%

Gross Profit 1,556,250
Sales 2,919,375

c. Debtors Turnover Ratio 12.61

Sales 2,919,375
Beginning Debtors 137,812
Ending Debtors 93,750

d. Interest Coverage Ratio 2.50

Profit before Tax 56,250
Interest Expenses 37,500
EBIT 93,750