Q-----1

Financial Statements of Packages Enterprises are as follow :

Packages Enterprises

Statement of Financial Position

As on 30-June-2019

Assets Amounts

Cash RS.15,000

A/R 34,100

Marketable Securities 7,200

Inventories 82,000

Net Fixed Assets 270,000

Total Assets Rs.408,300

Liabilities and Stockholders’ Equity

Notes Payable Rs. 13,000

Accruals 5,000

A/P 57,000

Rs.75,000

Long term Debt 150,000

Common Stock Equity 110,200

(20,000 shares are outstanding)

Retained Earning 73,100

Total Stockholders Equity 183,300

Total Liabilities and Stockholders’ Equity 408,300

 Packages Enterprises

Statement of Financial Performance

For the Period Ended on 30-June-2019

Revenue 600,000

Less- Cost of sale 460,000

Gross Profit 140,000

Less- Operating Expenses 60,000

Operating Profit 80.000

Less- Interest expenses 10,000

Net profit before tax 70,000

Tax on profit 27,100

Profit available for shareholders 42,900

Requirements

Calculate the possible Ratios.

Q-----2

Bhakkar group and Layyah group of companies are running the same nature of business from 1974 and
2001 respectively. The Financial statements of both groups are as follow. Please analyses the financial
statements of both corporations.

Bhakkar Layyah

Current Asset

Cash 90,000 43,000

Marketable Securities 25,000 3,800

A/R 13,000 6,000

Inventories 22,000 7,200

Non-Current Assets

Plant and Machinery 430,000 250,000

Investment in Associate 110,000 70,000

690,000 380,000

Current Liabilities

A/P 50,000 20,000

N/P 12,000 6,000

Finance Lease Payment 6,000 3,600

Interest Payable 2,200 930

Long term Debt

Finance lease 176,800 112,470

Owners Equity

Share Capital* 300,000 182,000

Premium on share capital 100,000 28,000

Retained Earnings 43,000 27,000

690,000 38,0000
No. of shares outstanding 30,000 18200

Par Value Rs.10 Rs.10

Market value Rs.13.5 Rs.11.7

Statement of Financial Performance

Bhakkar Layyah
(Rupees) (Rupees)

Sales Revenue 700,000 420,000

Cost of Goods Sold (530,000) (280,000)

Gross Profit 170,000 140,000

Operating Expenses (120,000) (70,000)

Earnings before interest and tax 50,000 70,000

Interest expenses (2,200) (930)

Interest income 12,000 7,000

Earnings before tax 59,800 76,070

Tax (19200) (27390)

40,600 48,680
Q----3 Financial Statements of BELLA Corporations are as follow:

Bella Corporations Limited

Statement of Financial Position

As on 30-june-2019

2019 2018

Current Asset

Cash 56,000 62,000

Inventories 13,000 46,000

A/R 23,000 14,000

92,000 122,000

Non-Current Assets

Plant and Machinery 282,000 288,000

Furniture and Fixture 81,000 86,000

363,000 374000

455,000 496,000

Current Liabilities

A/P 66,000 72,000

Bills Payable 16,000 25,000

82,000 97,000

Long term Debt

Bank Loan 100,000 150,000

Owners Equity

Share Capital 200,000 200,000

Revaluation Surplus 12,000 22,000

Retained Earnings 61,000 27,000

455,000 496,000

Bella Corporations

Statement of Financial Performance

For the year of 2019

2019 2018
(Rupees) (Rupees)

Sales Revenue 900,000 1,105,000

Cost of Goods Sold (756,000) (683,000)

Gross Profit 144,000 422,000

Operating Expenses (105000) (203000)

EBIT 39000 219,000

Tax (6300) (46000)

32,700 173,000

Notes

1) Sales revenue includes cash sales of Rs. 52,000 and 75,000 for 2019 and 2018 respectively.
2) 20000 No. of shares are outstanding.
3) Amounting to rupee 3,500 and 9,500 for the year 2019 and 2018 respectively are part of bills
payable which are treated as bills payable other than trading purposes.
4) Inventories are recoded Cost of sell or NRV whichever is less.
5) Assumed 365 days in a year for this question.