Page 213 - DMGT104_FINANCIAL_ACCOUNTING

( in lakh)

Liabilities: Previous Year 2007 Current Year 2008

Equity Share Capital (of 10 each) 480 480
General Reserves 192 364
Long-term Loans 364 339
Creditors 134 104
Unit 9: Analysis and Interpretation of Financial Statements
Outstanding Expenses 12 -
Other Current Liabilities 18 13
1,200 1,300
Assets: Notes
Plant 804 780
Cash 108 156
Debtors 120 130
Inventories 168 234
1,200 1,300

Income Statement
for the year ended March 31, 2008
( in lakh)
Previous Year 2007 Current Year 2008
Gross Sales 740 960
Less: Returns 40 60
Net Sales 700 900
Less: Cost of Goods Sold 380 430
Gross Profit 320 470
Less: Selling General and Administrative Cost 100 144
Operating Profit 220 326
Less : Interest Expenses 40 34
Earning Before Taxes 180 292
Less : Taxes 63 103
Earning After Taxes 117 189

Solution:
Income Statement (Common Size)
(For the year ended March 31, 2008)
(Percentage)
Particulars Previous Year Current Year
2007 2008
Net Sale 100.0 100.0
Cost of Goods Sold 54.3 47.8
Gross Profit 45.7 52.2
Selling, General and Administrative Expenses 14.3 16.0
Operating Profit 31.4 36.2
Interest 5.7 3.8
Earning Before Taxes 25.7 32.4
Taxes 9.0 11.4
Earning After Taxes (EAT) 16.7 21.0

Balance Sheet (Common size as at March 31, 2008)
(Percentage)
Particulars Previous year Current year
Owner's Equity
Equity Share Capital 40.0 36.9
General Reserves 16.0 28.0
56.0 64.9
Long-term Borrowings: Contd...
Loan 30.3 26.1
Current Liabilities: Creditors 11.2 8.0
1.0
Outstanding Expenses LOVELY PROFESSIONAL UNIVERSITY - 207
Other Liabilities 1.5 1.0
13.7 9.0
Total Liabilities 100.0 100.0
Fixed Assets:
Plant Assets Net of Accumulated Depreciation 67.0 60.0
Current Assets:
Cash 9.0 12.0
Debtors 10.0 10.0
Inventories 14.0 18.0
33.0 40.0
Total Assets 100.0 100.0