What is meant by a 'Common Size Statement’?
Common Size Statement or component percentage statement, is a financial tool to analyse the key changes and trends in the financial position and operational result of a company.
Prepare a Comparative Income Statement from the following information.
2009 2010
Rs. Rs.
Sales 10,00,000 12,50,000
Cost of goods sold 5,00,000 6,50,000
Carriage inwards 30,000 50,000
Operating Expenses 50,000 60,0000
Income Tax 50% 50%
Following is the Income statements of Raj Ltd. For the year ended 31-3-2011:
|
Particulars |
Amount Rs |
|
Income: |
|
|
Sales |
2,00,000 |
|
Other Incomes |
15,000 |
|
Total Income |
2,15,000 |
|
|
|
|
Expenses: |
|
|
Cost of goods sold |
1,10,000 |
|
Operating expenses |
5,000 |
|
Total Expenses |
1,15,000 |
|
Tax |
40,000 |
Prepare a common size Income Statements of Raj Ltd. for the year ended 31-3-2011.
State the objectives of 'Analysis of Financial Statements'.
