Table of Contents
Analysis of Financial Statement Past Papers
Q.1 Differentiate the following…
- Fixed assets Vs. current assets
- 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.
- 4 The following information has been taken from the books of Mujeeb Corporations on December 31st,
Net fixed assets 765000
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
- 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.
- 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.
- 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:
- If the profit sharing ratio is 3:2;
- 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:
- Balance sheet
- Common size analysis
- Impact of liability analysis on balance sheet