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    Facgdse07T-B.C - (DSE2) : West Bengal State University

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    Facgdse07T-B.C - (DSE2) : West Bengal State University

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    6253_F

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    Facgdse07T-B.C - (DSE2) : West Bengal State University

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    of 3

    CBCS/B.Com./Programme/6th Sem.

    /FACGDSE07T/2021

    WEST BENGAL STATE UNIVERSITY


    B.Com. Programme 6th Semester Examination, 2021

    FACGDSE07T-B.COM. (DSE2)
    FINANCIAL STATEMENT ANALYSIS
    Time Allotted: 2 Hours Full Marks: 50

    The figures in the margin indicate marks of question.


    Candidates should answer in their own words and adhere to the word limit as practicable.

    GROUP-A
    Answer any two questions from the following 10×2 = 20
    1. From the following information prepare a comparative Balance Sheet of Z Ltd.
    and interpret the financial position.
    Balance Sheet
    As at 31 s t December
    Liabilities 2020 2021 Assets 2020 2021
    ` ` ` `
    Equity capital 5,00,000 7,00,000 Land & Building 3,80,000 3,25,000
    Reserves and surplus 4,50,000 3,70,000 Plant & Machinery 4,25,000 6,00,000
    Debentures 2,50,000 3,00,000 Furniture & Fixtures 35,000 40,000
    Long-term loan 1,75,000 2,00,000 Other Fixed Assets 20,000 25,000
    Bills Payable 35,000 30,000 Stock 2,75,000 3,15,000
    Sundry creditors 80,000 1,05,000 Sundry Debtors 3,25,000 3,60,000
    Other Current liabilities 4,000 6,000 Bills Receivable 20,000 30,000
    Cash and Bank 14,000 11,000
    Prepaid Expenses – 5,000
    14,94,000 17,11,000 14,94,000 17,11,000

    2. Following are the Income Statements of a company for the year ending 31st
    March, 2020 and 2021:
    2020 2021
    (` in '000) (` in '000)
    Sales 4,000 6,000
    Miscellaneous Income 300 450
    4,300 6,450
    Expenses
    Cost of sales 2,900 4,600
    Office expenses 100 250
    Selling expenses 50 100
    Interest 25 50
    3,525 5,000
    Net Profit 775 1450
    4,300 6,450

    6253 1 Turn Over


    CBCS/B.Com./Programme/6th Sem./FACGDSE07T/2021

    Prepare a common-size Income Statement and comment on the financial


    performance of the company.

    3. Define DuPont analysis. Draw DuPont chart. 2+8

    4. From the following information prepare a Trend Analysis


    Accounting year Sales (`) Cost of goods sold (`) Gross margin (`) Capital Employed (`)
    2000-01 1000 600 320 800
    2001-02 1400 900 450 900
    2002-03 1700 1100 500 1250
    2003-04 2300 1500 700 1500
    2004-05 3900 2600 1200 1700
    2005-06 4400 3800 575 1900
    2006-07 4600 3900 625 1950
    2007-08 6000 5000 800 2100

    5. Describe Dividend Discount Model and Price-Earnings Ratio. 5+5

    6. Discuss the significance of Financial Statement. Describe the various qualitative 4+6
    characteristics of Financial Statement.

    GROUP-B
    Answer any two questions from the following 15×2 = 30
    7. From the following Balance Sheet of S Ltd. prepare: 3+12
    (i) Statement of Changes in Working Capital and (ii) Fund Flow Statement

    Liabilities 31.03.2019 31.03.2020 Assets 31.03.2019 31.03.2020


    (`) (`) (`) (`)
    Equity Share Capital 6,00,000 8,00,000 Land & Building 1,80,000 2,20,000
    Profit & Loss A/C 1,00,000 1,60,000 Plant & Machinery 5,00,000 8,00,000
    General Reserve 50,000 70,000 Stock 1,00,000 85,000
    Provision for Taxation 50,000 40,000 Bills Receivable 50,000 30,000
    Sundry Creditors 1,10,000 1,30,000 Debtors 1,50,000 1,60,000
    Bills Payable 80,000 90,000 Cash in hand 20,000 20,000
    Outstanding Rent 10,000 25,000
    10,00,000 13,15,000 10,00,000 13,15,000
    Additional information:
    (i) Depreciation on Plant & Machinery in 2020 Rs. 50,000.
    (ii)A piece of Machinery costing Rs. 12,000 was sold for Rs. 8,000 during 2020
    (depreciation of Rs. 7,000 had been provided on it).

    8. Write short notes on Liquidity, Profitability and Solvency Ratios of firm. 5×3=15

    6253 2
    CBCS/B.Com./Programme/6th Sem./FACGDSE07T/2021

    9. From the following particulars prepare the Balance Sheet of S Ltd. for the year
    ended 31.12.2020
    Fixed Assets to net Worth 5:8
    Current Ratio 2:1
    Acid Test Ratio 1:1
    Reserves to Proprietors’ Funds 1:5
    Current Liabilities `36,000
    Cash in hand `1,500
    Fixed Assets `60,000

    10. You are required to prepare a cash flow statement from the following
    information:

    Liabilities 1.1.2020 31.12.2020 Assets 1.1.2020 31.12.2020


    (`) (`) (`) (`)
    Creditors 40,000 44,000 Cash 10,000 7,000
    Mrs. A's Loan 25,000 - Debtors 30,000 50,000
    Loan from bank 40,000 50,000 Stock 35,000 25,000
    Capital 1,25,000 1,53,000 Machinery 80,000 55,000
    Land 40,000 50,000
    Building 35,000 60,000
    2,30,000 2,47,000 2,30,000 2,47,000
    During the year, a machine costing `10,000 (accumulated depreciation `3,000)
    was sold for `5,000. The provisions for depreciation against machinery as on
    1-1-2020 was `25,000 and on 31-12-2020 `40,000. Net profit for the year 2020
    amounted to `45,000.

    11. From the five accounting Ratios given below, calculate Z score in case of X Ltd.,
    using Altman’s function and interpret the results.
    Sales to Total Assets = 2 times
    Market Value of Equity to Book Value of Debt = 150%
    Working Capital to Total Assets = 20%
    Retained Earnings to Total Assets = 25%
    EBIT to Total Assets = 10%

    12. Discuss the causes and symptoms of corporate financial distress.

    13. Write down the differences between cash flow statement and fund flow statement. 10+5
    Is depreciation a source of fund?

    N.B. : Students have to complete submission of their Answer Scripts through E-mail / Whatsapp to
    their own respective colleges on the same day / date of examination within 1 hour after end
    of exam. University / College authorities will not be held responsible for wrong submission
    (at in proper address). Students are strongly advised not to submit multiple copies of the
    same answer script.

    ——×——

    6253 3 Turn Over

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