Question

(A) Mention any two commonly used tools for comparison of financial statements.

(B) While preparing a Cash Flow Statement, identify the following transactions as belonging to Operating Activities, Investing Activities, Financing Activities, Cash and Cash Equivalents :

(i) Bank overdraft repaid. 

(ii) Purchase of Marketable Securities to be sold within 90 days. 

(C) From the following data, prepare a Common Size Balance Sheet of Palms Ltd. as at 31st March, 2018.

Answer 1

(A) (i) Ratios 

(ii) Balance sheet 

(iii) Cash flow statement

(B) (i) Cash and cash Equivalent 

(ii) Cash and Cash Equivalent