1.

The Annual report of a company gives following information about its

various segment performance.
Water purifier Air purifier
Particulars (₹) (₹)
(3)
Net Profit before Tax 1,10,000 3,00,000
Revenue from Operations 5,50,000 7,80,000
Tax Rate 50% 50%

Using common size statement as tools of analysis, find out and comment on
the following:
a. Expenses
b. Which segment is the best?
c. Which segment should be discarded?
2. The following information relates to credit purchase for two years 2019-20
and 2020-21:
2019-20 2020-21 (3)
Particulars
(₹) (₹)
Opening balance of Trade payables 1,00,000 -
Closing balance of Trade payables 60,000 1,20,000
Credit purchases 5,60,000 8,20,000
Discount received 5,000 7,000
Return outwards 10,000 6,000
Find out whether the cash outflow from creditor has increased or decreased
during 2020- 2021.
3. Retna was good at making designs, she started making designer furniture.
She started business with ₹.25,00,000, bought a factory for ₹. 20,00,000,
spent ₹. 2,00,000 on renovation (on its building) and purchased wood for
₹.5,00,000, tools and implements required for manufacturing furniture (3)
₹.20,000, salary ₹.30,000. Find out cash flows on account of Operating, Investing
and Financing activities.

4. The Annual report of a company gives following information about its

various segment performance

Segment Revenue from operation Operating Net Profit

(₹) (₹)
Water purifier 40,00,000 10,00,000
Air purifier 20,00,000 4,00,000
(3)
Home Decor 5,00,000 2,00,000
Using tools of analysis, comment on the following:
(i) Which segment is the best?
(ii) Which segment should be discarded?
5. Athveth has just completed his jewelry designing course from Retna
Academy, Mumbai. He started his own business of making artificial
jewelry. He bought a building for setting up the factory and office for ₹.10
lakh for which he borrowed a loan from bank @ 15% p. a. interest. He also
bought tools and implements required for manufacturing jewelry for ₹.
30,000 for cash. He also purchased necessary raw material required for
making jewelry for ₹. 40,000. In the first year he sold jewelry for ₹.40,000.
Interest on loan is due but not yet paid till the end of the first year. (3)
Find out net cash flow from operating, investing and financing activities
and classify the various activities under proper head.

6. From the following particulars regarding credit sales in 2019-2020 and

2020-2021, is it correct to say that cash inflow from debtors has improved in
the year 2020-2021?
2019-20 2020-21
Particulars
₹ ₹
Opening balance of Trade receivables 50,000 -
Closing balance of Trade receivables 80,000 60,000 (3)
Credit Revenue from operations 3,40,000 5,80,000
Discount allowed 4,000 6,000
Bad debts 2,000 4,000
Return Inwards 6,000 8,000
What is the amount of change in cash inflow?
7. The quarterly report of a company gives the following information about its
sales revenue and profit for the first quarter 2020-2021 and the first quarter
2019-2020
Particulars First quarter 2020- First quarter 2019-
2021 (₹) 2020 (₹) (3)
Revenue from operation 15,00,000 20,00,000
Net Profit Before Tax 5,00,000 4,00,000
Tax Rate 40% 40%
Which quarter is performing better? Has the performance improved,
comment using comparative statement as tools of analysis.

8 From the following information, Using tools of analysis find out:

(i) Which segment is the best?
(ii) Which segment should be discarded?

Segment Capital Employed (₹) Profit Before Interest

Tax and Dividend (₹) (3)
Medicines 40,00,000 10,00,000
Cosmetics 20,00,000 4,00,000
Garments 5,00,000 2,00,000
9. Santha was good at making good designs. She also had interest in fashion
designing so after completing her schoolings, she decided to practice in
creative designer wear w.e.f. 1st January, 2020. She purchased two sewing
machines worth ₹. 90,000 each and two electric cutting machines worth ₹.
12,000 each for the purpose of her business. She spent ₹.1,50,000 in
furnishing her shop and purchased fabric costing ₹.5,00,000 for (3)
manufacturing. Find out the net cash flow from investing activities clearly
stating whether it is an inflow or outflow.

10 (a) Akshit bought 4,000 shares of a company @ ₹.70 per share. Out of
which he sold 3,000 shares @ ₹.120 per share. How much profit will be
credited to Profit and Loss Account?

(b) A builder has agreed to lay the floor of a 2,000 sq. ft. house @ ₹.500 (3)
per sq. ft. his costs are
(i) Material @ ₹.250 sq. ft. and
(ii) Labour cost is @ ₹.150 per sq. ft.
What is his profit percentage?

11. (a) If credit purchases are ₹.32,00,000 and cash purchases are 20% of total
purchases. Find out the cash flow from operating activities when salary paid ₹.
1,00,000, carriage paid ₹.20,000 and commission received ₹.3,80,000.

(b) A businessman purchases suits @ ₹.1,500 each. He fixes a price which is

20% above cost. He gives a trade discount of 5% for cash sales. Sales not (3)
given. How much profit he earns per suit and to which account will it be
credited?

12. The Annual report of a company gives following information about its
various segment performance
Segment Revenue from Operation (₹) Gross Profit (₹)
P 9,00,000 1,80,000
Q 15,00,000 3,60,000
R 4,80,000 24,000 (3)
S 7,20,000 7,200
Using Ratio Analysis, comment on the following:
(i) Which segment is the best?
(ii) Which segment should be discarded?

13. Haneesh started business with ₹.20,00,000 which he arranged by taking a loan
of ₹.10,00,000 from his father and ₹.10,00,000 from bank @ 12% p.a as (3)
interest. He purchased a machine for ₹.2,00,000, raw material for ₹.1,00,000
and paid rent of ₹.10,000 during the year. Cash sales during the year were
₹.2,00,000. Find out cash flows on account of Operating, Investing and
Financing activities.