Problem Sheet 2 - Common Size Statements & Trend Analysis

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Problem Sheet 2 – Common Size Statements & Trend Analysis

1. Interpret the Balance sheet and Profit and Loss trend of Jet Airways from the details given in 1& 4.

2. Prepare Trend statements for the following and interpret:


Year 2013 2014 2015 2016 2017
Sales 2000 2500 3000 3500 4000
Cost of Goods sold 1400 1800 2200 2600 3000
Gross Profit 600 700 800 900 1000

3. Prepare Common size Income Statements for the two years given below:
Income Statements for the two year
Particulars 2016 2017
Gross Sales 370 480
Less: Returns 20 30
Net Sales 350 450
Less: COGS 190 215
Gross Profit 160 235
Less: Selling, general and admin. Costs 50 72
Operating Profit 110 163
Less: Interest Expenses 20 17
Less: Taxes 30 49
EAT 60 97
4. Interpret the commonsize Balance Sheet and Profit and Loss Statement of Jet airways from the
details given in 1 & 4

5. From the following Balance sheet prepare Common Size statements and interpret.

Balance Sheet Statements for the two years


Particulars 2016 2017
Plant and Equipment ( Net) 402 390
Cash 54 78
Debtors 60 65
Inventories 84 117
Total Assets 600 650
Equity share Capital 240 240
General Reserves 96 182
Long Term Debts 182 170
Creditors 67 52
Outstanding expenses 6 0
Other current liabilities 9 6
Total Liabilities 600 650

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