PART-B

(Analysis of Financial Statement)

27. \Vhich of the following transactions is involving decrease in both Current

Ratio and Quick Ratio.

(a) Purchase of Plant for cash

(b) Purchase of Plant on credit

(c) Payment made to trade payables

(d) Issue of Shares for cash consideration.

19 P.T.O.

OR

Cross Section Analysis is an example of _ _.

(a) Static (b) Dynamic

(c) External (d) Internal

28. In the case of financial enterprises, the cash flow resulting from dividend
paid should be classified as cash flow from:

(a) Operating activities (b) Financing activities

(c) Investing activities (d) None of the above

29. Statement I: Paid rent in advance will increase the Quick Ratio.

Statement II: Current Ratio and Quick Ratio both are short--term ratios.

(a) Both Statements are correct.

(b) Both Statements are incorrect.

(c) Statement I is correct and Statement II is incorrect.

(d) Statement I is incorrect and Statement II is correct.

OR

2 : 1 is ideal ratio, does stand true for:

(a) Liquidity Ratio (b) Debt Equity Ratio

(c) Quick Ratio (d) Inventory Turnover Ratio

30. Nalco Ltd. provides you the following information:

Particulars 31.3.2023(i) 31.3.2022(i)

8% Debentures 4,50,000 2,50,000

Bank overdraft 50,000 NIL

New debentures were issued on 1-1-2023.

Find out the cash flow from financing activity.

(a) Inflow i 2,50,000

(b) Outflow~ 2,00,000

(c) Inflow 2,26,000

(d) Inflow 1,96,000

31. Under what heads and sub-heads the following items will appear in the
Balance Sheet of acompany as per Schedule III, Part-I of the Companies
Act 2013:

(i) Bank overdraft

(ii) Provision for tax

(iii) Provision for employee benefits

(iv) Provisions for warranties

(v) Loan payable on demand

(vi) Stock of finished goods 3

32. The net profit after interest and tax of a company was 2,40,000; Rate
or income tax is 20%. The company has 12% debentures of 2,00,000.
Calculate interest coverage ratio. 3

33. Prepare Comparative Balance Sheet from the following:

Particulars Note 2022-23(t) 2021-22(t)

EQUITY AND LIABILITIES:

Shareholders' Funds:
Share Capital 20,00,000 15,00,000
Reserve & Surplus 4,00,000 3,00,00
Non-Current Liabilities
Long-term Borrowings 4,00,000 6,00,000
Current Liabilities:
Trade Payables 2,00,000 50,000
Other Current Liabilities - 50,000

30,00,000 25,00,000

ASSETS:
Non-Current Assets:
Property, Plant & Equipment and
Intangible Assets
(a) Property, Plant and Equipment 16,00,000 12,50,000
(b) Intangible Assets 2,00,000 1,00,000
Current Assets:
Trade Recivable 4,00,000 2,50,000
Inventory 4,50,000 6,50,000
Cash and Cash Equivalents 3,50,000 2,50,000

30,00,000 25,00,000 4
 OR

Prepare Common-size Income Statement of Jayant Ltd. from the following

information for the year ended 31st March, 2023:

Particulars 2022-2a m 2021-22 (0

Revenue from Operations 2,00,000 1,50,000

Other Income 15,000 25,000

Cost of materials consumed 1,10,000 70,000

Finance Cost 5,000 5,000

Tax 40,000 40,000 4

34. The following are the balances of Ashok Ltd.

Particulars 31-3-2023 (~) 31-3-2022 (0

Goodwill 42,000 55,000

Cash in Hand 65,000 26,800

Outstanding Expenses 1,400 2,100

Equipment 2,40,000 1,95,000

Accumulated depreciation on equipment 30,000 22,000

Provision for Tax 32,500 28,600
Building 2,70,000 3,00,000

Surplus: Statement of Profit & Loss 28,500 48,700

Inventory 25,000 52,000

Current Investment 36,500 28,700

Trade Receivable 29,000 33,500

Trade Payable 28,000 19,600

Additional Information:

(a) Interim dividend was paid during the year, 28,000.

(b) During the year there was no sale or purchase of building.

(c) During the year equipment costing, 32,000 on which depreciation of

, 8,000 had been charged was sold for , 16,000.

(d) Income tax was provided during the year, 22,500.

On the basis of the above information, find out the cash flow from
operating activity. 6