Analysis of Financial Statement Past Papers

Analysis of Financial Statement Past PapersAnalysis of Financial Statement Past Papers

Q.1     Differentiate the following…

  1. Fixed assets Vs. current assets
  2. Long-term liabilities vs. short-term liabilities

Q.2       Elaborate in detail the components of trading & profit/loss statement.

Q.3      How financial statement analysis contributes to maintaining the financial risk of a company.

  1. 4 The following information has been taken from the books of Mujeeb Corporations on December 31st,

2015.

Cash,                                       $330000

   A/R,                                        185000

Inventory                                250000

Net fixed assets                      765000

A/P,                                         229000

Accruals,                                 201000

Bank loan(short-term),            110000

Long-term debt,                      300000

Common stock                        90000

Retained earnings                   499000.

Required: Calculate the following.

(i). Current ratio.

(ii). Debt to equity ratio

   (iii). Quick ratio.

   (iv). Working capital

  1. 5 On July 1st, 2014, Company A purchased equipment at the cost of $160,000.  This equipment is estimated to have 5 year useful life.  At the end of the 5th year, the salvage value (residual value) will be $20,000.  Company A recognizes depreciation to the nearest whole month.  Calculate the depreciation expenses for 2014, 2015 and 2016 using double declining balance depreciation method.

Q 6.  Elaborate the concept of revaluation of assets in detail.

  1. 7 a) Sami & Sana started a partnership business on Jan 1, 2014. Sami contributed Rs. 5000; Furniture valued Rs. 10000 & Sana brought Rs. 40000 in cash& Land worth Rs. 80000. Journalize the transaction and also record in the balance sheet.
  2. b) A & B are partners in a business with capitals of Rs. 50000 & Rs. 30000 respectively. The net income earned for the year 2014 is Rs. 25000. Prepare journal entries under each of the following cases:
  3. If the profit sharing ratio is 3:2;
  4. If the profit sharing ratio is 70% to A & 30% to B;
  • Up to Rs. 20000 in the ratio of 3:2 & remaining equally.                                                                                                           8 Write short notes on any two of the followings:
  1. Balance sheet
  2. Common size analysis
  3. Impact of liability analysis on balance sheet