Financial Statement Analysis Assignment
Question1. Mr Raj joined the company named Kamat Ltd as an accounts executive. On the very first day, his senior gave him the task of designing the Common-Size Statements with adequately structuring its types for the financial statements. Discuss about common size statement and its types. Also, how Comparative statements and common size statement differs.
Question 2. Amrita intends to make a stock market investment. She fits the description of an investor who seeks risk, but she also thinks that prior to investing, it's crucial to have a solid understanding of market ratios. Before making any investing decisions, Amrita should consider certain crucial market ratios, discuss any five of them
Question 3. Following are the particulars available for Z and X, LLP
Particulars |
(Rs in ‘000) |
retained earnings |
860 |
accounts receivable |
250 |
supplies |
150 |
salaries payable |
150 |
equipment |
1500 |
unearned revenue |
200 |
accounts payable |
540 |
cash |
550 |
prepaid insurance |
300 |
common stock |
1000 |
Question 3a. Prepare Vertical Form Balance Sheet out of the details as shared in the table.
Question 3b. Define and calculate the current ratio, discuss its significance.