# Balbharati solutions for Book-keeping and Accountancy 12th Standard HSC Maharashtra State Board chapter 9 - Analysis of Financial Statements [Latest edition]

## Chapter 9: Analysis of Financial Statements

Exercise 9 (Objective Questions)Exercise 9 (Practical problems)
Exercise 9 (Objective Questions) [Pages 375 - 376]

### Balbharati solutions for Book-keeping and Accountancy 12th Standard HSC Maharashtra State Board Chapter 9 Analysis of Financial Statements Exercise 9 (Objective Questions) [Pages 375 - 376]

#### Select the most appropriate alternative from the given below and rewrite the sentences.

Exercise 9 (Objective Questions) | Q A. 1. | Page 375

Gross Profit Ratio indicates the relationship of gross profit to the ___________.

• Net-Cash

• Net-Sales

• Net Purchases

• Gross Sales

Exercise 9 (Objective Questions) | Q A. 2. | Page 375

Current Ratio =""/"Current Liabilities"

• Quick Assets

• Quick Liabilities

• Current Assets

• None of these

Exercise 9 (Objective Questions) | Q A. 3. | Page 375

Liquid Assets =____________

• Current Assets + Stock

• Current Assets - Stock

• Current Assets - stock + prepaid Expenses

• None of these

Exercise 9 (Objective Questions) | Q A. 4. | Page 375

Cost of goods sold __________.

• Sales - Gross profit

• Sales - Net Profit

• Sales Proceeds

• None of these

Exercise 9 (Objective Questions) | Q A. 5. | Page 375

Net-Profit Ratio is equal to __________.

• Operating ratio

• Operating net-profit ratio

• Gross Profit Ratio

• Current Ratio

Exercise 9 (Objective Questions) | Q A. 6. | Page 375

The Common Size Statement requires _________.

• Common base

• Journal Entries

• Cash Flow

• Current Ratio

Exercise 9 (Objective Questions) | Q A. 7. | Page 375

Bill Payable is ___________

• Long term loan

• Current Liabilities

• Liquid Assets

• Net Loss

Exercise 9 (Objective Questions) | Q A. 8. | Page 375

Generally Current Ratio should be ___________.

• 2:1

• 1:1

• 1:2

• 3:1

Exercise 9 (Objective Questions) | Q A. 9. | Page 375

From financial statement analysis the creditors are specially interested to know ___________.

• Liquidity

• Profits

• Sale

• Share Capital

Exercise 9 (Objective Questions) | Q B. 1. | Page 375

Give one word/term/phrase for the following statement.

The statement showing profitability of two different periods

Exercise 9 (Objective Questions) | Q B. 2. | Page 375

Give one word/term/phrase for the following statement.

The ratio measures the relationship between Gross Profit and Net Sales.

Exercise 9 (Objective Questions) | Q B. 3. | Page 375

Give one word/term/ phrase for the following statement
Critical evaluation of financial statement to measure profitability.

Exercise 9 (Objective Questions) | Q B. 4. | Page 375

Give one word/term/ phrase for the following statement
A particular mathematical number showing relationship between two accounting figures.

Exercise 9 (Objective Questions) | Q B. 5. | Page 375

Give one word/term/ phrase for the following statement.

An asset which can be converted into cash immediately.

Exercise 9 (Objective Questions) | Q B. 6. | Page 375

Give one word/term/phrase for the following statement.

The ratio measuring the relationship between net profit and ownership capital employed.

Exercise 9 (Objective Questions) | Q B. 7. | Page 375

Give one word/term/phrase for the following statement.

The statement showing financial position for different periods of previous year and current year.

Exercise 9 (Objective Questions) | Q B. 8. | Page 376

Give one word/term/phrase for the following statement.

Statement showing changes in cash and cash equivalent during a particular period.

Exercise 9 (Objective Questions) | Q B. 9. | Page 376

Give one word/term/phrase for the following statement.

Activity related to acquisition of long term assets and investment.

Exercise 9 (Objective Questions) | Q B. 10. | Page 376

Give one word/term/phrase for the following statement.

The ratio that establishes relationship between Quick Assets and Current Liabilities

Exercise 9 (Objective Questions) | Q C. 1. | Page 376

State true or false with reason.

Financial Statement includes only Balance Sheet.

• True

• False

Exercise 9 (Objective Questions) | Q C. 2. | Page 376

State whether following statement is true or false :
Analysis of financial statement is a tool but not a remedy.

• True

• False

Exercise 9 (Objective Questions) | Q C. 3. | Page 376

State true or false with reason.

Purchase of Fixed Assets is operating cash flow.

• True

• False

Exercise 9 (Objective Questions) | Q C. 4. | Page 376

State true or false with reason.

Dividend paid is not a source of fund

• True

• False

Exercise 9 (Objective Questions) | Q C. 5. | Page 376

State true or false with reason.

Gross profit depends upon not sales.

• True

• False

Exercise 9 (Objective Questions) | Q C. 6. | Page 376

State true or false with reason.

Payment of cash against purchase of stock is use of fund.

• True

• False

Exercise 9 (Objective Questions) | Q C. 7. | Page 376

State whether following statement is true or false.
Ratio Analysis is useful for inter-firm comparison.

• True

• False

Exercise 9 (Objective Questions) | Q C. 8. | Page 376

State true or false with reason.

The short term deposits are considered as cash equivalent.

• True

• False

Exercise 9 (Objective Questions) | Q C. 9. | Page 376

State true or false with reason.

Activity Ratios Turnover Ratios are the same.

• True

• False

Exercise 9 (Objective Questions) | Q C. 10. | Page 376

State true or false with reason.

Current Ratio measures the liquidity of the business.

• True

• False

Exercise 9 (Objective Questions) | Q C. 11. | Page 376

State true or false with reason.

Ratio analysis measures profitability efficiency and financial soundness of the business.

• True

• False

Exercise 9 (Objective Questions) | Q C. 12. | Page 376

State true or false with reason.

Usually current ratio should be 3:1.

• True

• False

Exercise 9 (Objective Questions) | Q C. 1. | Page 376

Mention two objectives of comparative statement?

Exercise 9 (Objective Questions) | Q C. 2. | Page 376

State three examples of cash inflows?

Exercise 9 (Objective Questions) | Q C. 3. | Page 376

State three examples of cash out flows?

Exercise 9 (Objective Questions) | Q C. 4. | Page 376

Give the formula of Gross Profit Ratio?

Exercise 9 (Objective Questions) | Q C. 5. | Page 376

Give the formula of gross profit?

Exercise 9 (Objective Questions) | Q C. 6. | Page 376

Give any three examples of current assets?

Exercise 9 (Objective Questions) | Q C. 7. | Page 376

Give the formula of current ratio?

Exercise 9 (Objective Questions) | Q C. 8. | Page 376

Give the formula of quick assets?

Exercise 9 (Objective Questions) | Q C. 9. | Page 376

State the formula of Cost of goods sold?

Exercise 9 (Objective Questions) | Q C. 10. | Page 376

State the formula of Average Stock?

Exercise 9 (Practical problems) [Pages 376 - 379]

### Balbharati solutions for Book-keeping and Accountancy 12th Standard HSC Maharashtra State Board Chapter 9 Analysis of Financial Statements Exercise 9 (Practical problems) [Pages 376 - 379]

Exercise 9 (Practical problems) | Q 1. | Page 376

From the Balance Sheet of Amar Traders as on 31st March 2018 and 31st, March 2019 prepare comparative Balance Sheet.

 Liabilities 31.3.2018 (₹) 31.3.2019 (₹) Assets 31.3.2018 (₹) 31.3.2019 (₹) Capital 60,000 72,000 Fixed Assets 1,20,000 1,50,000 Reserves and Surplus 24,000 30,000 Current Assets 28,000 27,000 Loans 34,000 51,000 Creditors 30,000 24,000 1,48,000 1,77,000 1,48,000 1,77,000
Exercise 9 (Practical problems) | Q 2. | Page 376

From the following Balance Sheet of Alpha Limited prepare a comparative Balance Sheet as on 31st March 2018 and 31st March 2019.

 Balance Sheet As on 31st March 2018 and 31st March 2019 Liabilities 31.3.2018 (₹) 31.3.2019 (₹) Assets 31.3.2018 (₹) 31.3.2019 (₹) Equity Share Capital 2,00,000 2,50,000 Land 80,000 1,00,000 12% Preference Shares 80,000 80,000 Building 60,000 90,000 Reserves and Surplus 1,00,000 1,40,000 Plant and Machinery 73,000 1,73,000 15% Debentures 60,000 51,000 Stock 1,50,000 1,10,000 Creditors 50,000 80,000 Debtors 1,28,000 1,40,000 Bills Payable 10,000 6,000 Bank 34,000 37,000 Provision for Taxation 25,000 43,000 5,25,000 6,50,000 5,25,000 6,50,000
Exercise 9 (Practical problems) | Q 3. | Page 377

Prepare Comparative Balance Sheet for the year ended 31.3.18 and 31.3.19 Assets & Liabilities as follows

 Particulars 31.3.18 (₹) 31.3.19 (₹) 1) Fixed Assets 120,000 1,50,000 2) Share Capital 60,000 72,000 3) Current Assets 28,000 27,000 4) Reserve & Surplus 24,000 30,000 5) Loan 34,000 57,000 6) Current liabilities 30,000 24,000
Exercise 9 (Practical problems) | Q 4. | Page 377

Prepare Comparative Balance Sheet for the year ended 31.3.17 and 31.3.18

 Particulars 31.3.17 (₹) 31.3.18 (₹) 1) Current liabilities 60,000 48,000 2) Fixed Assets 2,40,000 3,00,000 3) Loan 68,000 1,02,000 4) Share Capital 1,20,000 1,44,000 5) Reserve & Surplus 48,000 60,000 6) Current Assets 56,000 54,000
Exercise 9 (Practical problems) | Q 5. | Page 377

Prepare Comparative Income Statement of Noha Limited for the year ended 31.3.17 and 31.3.18

 Particulars 31.3.17 (₹) 31.3.18 (₹) Sales 2,00,000 3,00,000 Income Tax 50% 50% Cost of Sales 1,20,000 80,000 Indirect Expenses 8,000 12,000
Exercise 9 (Practical problems) | Q 6. | Page 378

Prepare comparative Income Statement of Sourabh Limited for the year ended 31.3.17 and 31.3.18

 Particulars 31.3.17 (₹) 31.3.18 (₹) Sales 4,00,000 6,00,000 Indirect Expenses 16,000 24,000 Cost of Sales 24,000 56,000 Income Tax 50% 50%
Exercise 9 (Practical problems) | Q 7. | Page 378

Following is the Balance Sheet of Sakshi Traders for the year ended 31.3.17 and 31.3.18

 Liabilities 31.3.17 (₹) 31.3.18 (₹) Assets 31.3.17 (₹) 31.3.18 (₹) Equity Share Capital 80,000 80,000 Fixed Assets 1,20,000 1,44,000 Pref. Share Capita 20,000 20,000 Investment 20,000 20,000 Reserve & Surplus 20,000 24,000 Current Assets 60,000 48,000 Secured Loan 40,000 16,000 Unsecured Loan 20,000 36,000 Current Liabilities 20,000 36,000 2,00,000 2,12,000 2,00,000 2,12,000

Prepare common-size Balance Sheet for the year 31.3.17 and 31.3.18

Exercise 9 (Practical problems) | Q 8. | Page 378

Prepare common size Income Statement for the year ended 31.3.17 and 31.3.18.

 Particulars 31.3.17 (₹) 31.3.18 (₹) Sales 2,00,000 2,50,000. Cost of goods sold 1,50,000 1,70,000 Office and Administrative Expenses 4,000 6,000 Selling and Distubution Expenses 6,000 1,000
Exercise 9 (Practical problems) | Q 9. | Page 378

Following is the Balance Sheet of Sakshi Limited. Prepare cashflow statement.:

 Liabilities 31.3.17 (₹) 31.3.18 (₹) Assets 31.3.17 (₹) 31.3.18 (₹) Share Capital 2,00,000 3,00,000 Cash 20,000 30,000 Creditors 60,000 90,000 Debtors 1,40,000 2,50,000 Profit and Loss A/c 40,000 70,000 Stock 80,000 70,000 Land 60,000 1,10,000 3,00,000 4,60,000 3,00,000 4,60,000
Exercise 9 (Practical problems) | Q 10. | Page 378

From the following Balance Sheet of Konal Traders prepare cash flow statement.

 Liabilities 31.3.17 (₹) 31.3.18 (₹) Assets 31.3.17 (₹) 31.3.178 (₹) Share Capital 2,00,000 2,50,000 Cash 30,000 47,000 Creditors 70,000 45,000 Debtors 1,20,000 1,15,000 Profit and Loss A/c 10,000 23,000 Stock 80,000 90,000 Land 50,000 66,000 2,80,000 3,18,000 2,80,000 3,18,000
Exercise 9 (Practical problems) | Q 11. | Page 379

A Compay had the following Current Assets and Current Liabilities

 Debtors ₹ 1,20000 Creditors ₹ 60,000 Bills Payable ₹ 40,000 Stock ₹ 60,000 Loose Tools ₹ 20,000 Bank overdraft ₹ 20,000

Calculate Current Ratio.

Exercise 9 (Practical problems) | Q 12. | Page 379

Current Assets of Company ₹ 6,00,000 and its Current Ratio is 2:1

Find Current Liabilities

Exercise 9 (Practical problems) | Q 13. | Page 379

Current Liabilities = ₹ 3,00,000

Working Capital  = ₹ 8,00,000

Inventory = ₹ 2,00,000

Calculate Quick Ratio.

Exercise 9 (Practical problems) | Q 14. | Page 379

Calculate the Gross Profit Ratio

 Sales ₹ 2,70,000 Net purchases ₹ 1,50,000 Sales Ratio ₹ 20,000 Closing Stock ₹ 25,000 Operating Stock ₹ 45,000
Exercise 9 (Practical problems) | Q 15. | Page 379

Calculate Net Profit Ratio from the following

 Sales ₹ 3,80,000 Cost of good sold ₹ 2,60,000 Indirect Exp ₹ 60,000
Exercise 9 (Practical problems) | Q 16. | Page 379

Calculate Operating Ratio

 Cost of good sold ₹ 3,50,000 Operating Exp. ₹ 30,000 Sales ₹ 5,00,000 Sales Return ₹ 30,000
Exercise 9 (Practical problems) | Q 17. | Page 379

Calculate

 1) Current Assets ₹ 3,00,000 2) Current Liabilities ₹ 1,00,000

What is current Ratio.

## Chapter 9: Analysis of Financial Statements

Exercise 9 (Objective Questions)Exercise 9 (Practical problems)

## Balbharati solutions for Book-keeping and Accountancy 12th Standard HSC Maharashtra State Board chapter 9 - Analysis of Financial Statements

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