Financial Statement Analysis Assignment
Question1.MrRajjoinedthecompanynamedKamatLtdasanaccountsexecutive.Ontheveryfirstday,hisseniorgavehimthetaskofdesigningtheCommon-SizeStatementswithadequatelystructuringitstypesforthefinancialstatements.Discussaboutcommonsizestatementanditstypes.Also,howComparativestatementsandcommonsizestatementdiffers.
Question 2.Amritaintendstomakeastockmarketinvestment.Shefitsthedescriptionofaninvestorwhoseeksrisk,butshealsothinksthatpriortoinvesting,it'scrucialtohaveasolidunderstandingofmarketratios.Beforemakinganyinvestingdecisions,Amritashouldconsidercertaincrucialmarketratios,discussanyfiveofthem
Question 3. Following arethe particularsavailablefor ZandX,LLP
|
Particulars |
(Rsin000) |
|
retained earnings |
860 |
|
accountsreceivable |
250 |
|
supplies |
150 |
|
salaries payable |
150 |
|
equipment |
1500 |
|
unearned revenue |
200 |
|
accountspayable |
540 |
|
cash |
550 |
|
prepaidinsurance |
300 |
|
common stock |
1000 |
Question 3a.PrepareVerticalFormBalance Sheet out of thedetails as sharedin thetable.
Question 3b. Defineandcalculatethecurrentratio, discuss its significance.
