Financial Statement Analysis

SEP 2023 Unique Assignments contact
[email protected]
+91- 9503094040

Financial Statement Analysis

Question1

Mr Kamat joined the company named ABC Ltd as an accounts executive. On the very first day, his senior gave him the task of assessing the financial statements of the competitor and asked him to perform trend analysis. If you being the senior, discuss about the objectives of financial statement analysis and characteristics of trend analysis with Mr Kamat so that he can start the work with hundred percent dedication. (10 marks)
Question2

Marry Kom is planning to invest in the share market. She has a profile of risk seeker investor but she believes that before investing it is important to understand market ratios effectively. Discuss any five market ratios with their importance that Marry Kom should look into before undertaking any investment decision. (10 marks)

Question3

The following information is available in relation to Britannia Company. The Company has profit before taxes of Rs 50 lacs.

A. Classify and give reasons for the cash flows falling under the operating activities (5 marks)

B. Classify and give reasons for the cash flows falling under the investing activities. (5 marks)

Particulars Amount
Rs in (Lacs)
1. Tangible assets purchased during the year 75
2. Depreciation charged on these tangible assets for the year @ 10% ?
3. Stock sold for the year 95
4. Loan given to Big Boy Company 150
5. Interest received from Big Boy company for the said loan @11.5% ?
6. Shares purchased of a company called as Arvind Mills 10
7. Dividend Received from Arvind Mills 1
8. Taxes paid for the year @ 30% ?

SEP 2023 Unique Assignments contact
[email protected]
+91- 9503094040