₹198.00
Scroll down for Match your questions with Sample
Note- Students need to make Changes before uploading for Avoid similarity issue in turnitin.
Another Option
UNIQUE ASSIGNMENT
0-20% Similarity in turnitin
Price is 700 per assignment
Unique assignment buy via WhatsApp 8755555879
Description
| SESSION | July-Aug 2025 |
| PROGRAM | BACHELOR OF Commerce |
| SEMESTER | III |
| course CODE & NAME | DCM2105 Financial statement interpretation |
Assignment Set – 1
Q1. A. Discuss the significance of financial statement analysis. Mention types of financial statements Analysis are there?
- Prepare Income Statement for the year ended 31st Dec 2024 from the following as per schedule III of companies Act 2013:
Gross Revenue (Sales) ……………………………….. ₹ 1,200,000
Purchase of Raw Material …………………………… ₹ 640,000
Opening Raw Material ………………………………. ₹ 180,000
Closing Raw Material ………………………………. ₹ 80,000
Depreciation ………………………………………… ₹ 30,000
Selling Expenses …………………………………… ₹ 12,000
Retirement Benefit Expense ……………………….. ₹ 55,000
Salary Expense …………………………………….. ₹ 90,000
Office equipment (life less than 1 year) …………. ₹ 60,000
Interest Expense ……………………………………. ₹ 10,000
Tax Expense ……………………………………….. ₹ 50,000
Extraordinary Expenses ………………………….. ₹ 40,000
Note: Office equipment with less than 1 year life is treated as revenue expenditure.
Ans 1.
(A). Significance and Types of Financial Statement Analysis
Financial Statement Analysis is the process of examining a company’s financial statements to evaluate its performance, profitability, and financial health. It helps in understanding how efficiently a business operates by analyzing key components such as the Balance Sheet, Income Statement, and Cash Flow Statement.
The analysis is crucial for decision-making — investors assess returns, creditors judge
Its Half solved only
Buy Complete from our online store
https://smuassignment.in/online-store/
MUJ Fully solved assignment available for session Jul-Aug 2025.
Lowest price guarantee with quality.
Charges INR 198 only per assignment. For more information you can get via mail or Whats app also
Mail id is aapkieducation@gmail.com
Our website www.smuassignment.in
After mail, we will reply you instant or maximum
1 hour.
Otherwise you can also contact on our
whatsapp no 8791490301.
Q2. From Income Statement for the Year Ended December 31,2024 (in Rs.). Determine Cash from operating activity.
Revenues
- Sales …………………………………. ₹ 6,00,000
- Other revenues ………………………… ₹ 60,000
Expenses
- Cost of goods sold …………………… ₹ 2,50,000
- Operating expenses ………………….. ₹ 1,20,000
- Interest expense …………………….. ₹ 12,000
- Tax expense ………………………….. ₹ 25,000
Net income (as per statement) ………. ₹ 2,53,000
Additional information
- Depreciation expense …………………….. ₹ 35,000
- Increase in Accounts Receivable …………. ₹ 12,000
- Decrease in Inventory …………………… ₹ 7,000
- Increase in Accounts Payable ……………. ₹ 10,000
- Increase in Accrued Expenses ……………. ₹ 4,000
(Assumption: interest and tax paid during the year equal interest expense and tax expense shown — no separate timing differences provided.)
Ans 2.
Calculation of Cash from Operating Activities
(For the year ended December 31, 2024)
Given
| Particulars | Amount (₹) |
Q3. A. Prepare a schedule for changes in the working capital from the Balance sheet data given below:
| Dec 2023 (Rs.) | Dec 2024 (Rs.) | |
| Capital & Liabilities: | ||
| Share Capital | 6,00,000 | 7,50,000 |
| Trade creditors | 2,12,000 | 1,40,000 |
| Profit & Loss A/c | 28,000 | 62,000 |
| 8,40,000 | 9,52,000 | |
| Assets: | ||
| Machinery | 140,000 | 2,00,000 |
| Stock-in-trade | 2,42,000 | 2,72,000 |
| Debtors | 3,62,000 | 3,40,000 |
| Cash | 96,000 | 1,40,000 |
| Total | 8,40,000 | 9,52,000 |
Current ratio = 3:1
Acid-Test ratio = 1.5 :1
Working capital = Rs.180000
Find out:
- Current assets
- Current Liabilities
- Liquid assets
7+3 marks
Ans 3.
- Schedule of Changes in Working Capital
(All figures in ₹)
Identify Current Items
- Current Assets (CA): Stock-in-trade, Debtors, Cash
Assignment Set – 2
Q4. A. Perform a trend analysis for ABC co. over a five-year period (2018-2022) for sales, expenses, and net income to understand the relationships between these components.
| Year | Sales (₹) | Expenses (₹) | Net Income (₹) |
| 2019 | 9,00,000 | 6,80,000 | 2,20,000 |
| 2020 | 9,50,000 | 7,20,000 | 2,30,000 |
| 2021 | 8,80,000 | 7,00,000 | 1,80,000 |
| 2022 | 10,20,000 | 7,50,000 | 2,70,000 |
| 2023 | 10,80,000 | 7,80,000 | 3,00,000 |
(B). ₹ 2,00,000 is the cost of revenue from operations, inventory turnover is 8 times, stock at the beginning is 1.5 times the stock at the end. Calculate the value of opening and closing stock.
Ans 4.
- Trend Analysis of ABC Co. (2019–2023)
Trend Analysis
Trend analysis helps study changes in key financial components—sales, expenses, and net income—over multiple years. It shows whether the company’s performance is improving or declining. The base year is taken as 2019 (index = 100), and subsequent years are expressed as percentages of the base year.
Sales and
Q5. (A). State different techniques of Earnings Management.
(B). Explain different methods used for Financial Forecasting.
Ans 5.
- Techniques of Earnings Management
Earnings management refers to the intentional manipulation of accounting practices to present a company’s financial performance in a desired manner. While often done within the framework of accounting rules, it can mislead stakeholders about the company’s true financial health.
Major Techniques
- Income Smoothing: Companies adjust the timing of revenue and expenses to reduce
Q6. From the following Balance sheet of a SGRCS ltd for the year 2023 and 2024. Prepare a comparative Balance sheet and comment on the financial position of the concern:
| Liabilities | 2023 (₹) | 2024 (₹) | Assets | 2023 (₹) | 2024 (₹) |
| Equity Share Capital | 7,00,000 | 9,00,000 | Land & Building | 4,00,000 | 3,50,000 |
| Reserves & Surplus | 2,50,000 | 3,00,000 | Plant & Machinery | 3,50,000 | 5,00,000 |
| 10% Debentures | 1,50,000 | 2,00,000 | Furniture & Fixtures | 30,000 | 40,000 |
| Long-term Loans | 1,00,000 | 1,50,000 | Other Fixed Assets | 20,000 | 25,000 |
| Bills Payable | 60,000 | 50,000 | Cash in Hand & Bank | 40,000 | 90,000 |
| Sundry Creditors | 90,000 | 1,10,000 | Bills Receivable | 80,000 | 1,00,000 |
| Other Current Liabilities | 20,000 | 30,000 | Sundry Debtors | 1,20,000 | 1,50,000 |
| Closing Stock | 2,30,000 | 4,83,000 | |||
| Prepaid Expenses | — | 2,000 | |||
| Total | 13,70,000 | 17,40,000 | Total | 13,70,000 | 17,40,000 |
Ans 6.
Comparative Balance Sheet of SGRCS Ltd.
(₹)
Formulas used
- Absolute Change = 2024 − 2023
- % Change = (Absolute Change ÷ 2023) × 100
- Current Assets (CA) = Stock + Debtors + Bills Receivable + Cash/Bank + Prepaid (and any other current asset)
- Current Liabilities (CL) = Bills Payable + Sundry Creditors + Other Current Liabilities
- Working Capital (WC) = CA − CL
- A) Comparative Statement — Liabilities & Equity