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Case Study

The document provides income statements and balance sheets for the years 2012-13, 2013-14, and 2014-15 for a company that shows increasing sales, costs, profits, assets and liabilities over the three years. Financial ratios like the current ratio, debt ratios, and leverage ratios are also presented for each year. Overall the data shows the company growing substantially in size and operations over the three year period based on the increasing financial figures.

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rajan mishra
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156 views6 pages

Case Study

The document provides income statements and balance sheets for the years 2012-13, 2013-14, and 2014-15 for a company that shows increasing sales, costs, profits, assets and liabilities over the three years. Financial ratios like the current ratio, debt ratios, and leverage ratios are also presented for each year. Overall the data shows the company growing substantially in size and operations over the three year period based on the increasing financial figures.

Uploaded by

rajan mishra
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

Income satement,April 1 to March 31(In thousands)

2012-13 2013-14 Change Percentage


Sales
Cash 200 480 280 140
Credit 1800 4320 2520 140
Total sales 2000 4800 2800 140
Cost of goods sold 1240 2832 1592 128.387097
Gross profit 760 1968 1208 158.947368
Operating expenses
General,administration and selling 80 450 370 462.5
Depriciation 100 400 300 300
Interest expenses(on borrowings) 60 158 98 163.333333
Profit before tax 520 960 440 84.6153846
Tax @30% 156 288 132 84.6153846
Profit after tax 364 672 308 84.6153846

Balance sheet (in thousands)


2012-13 2013-14 Change Percentage
Assets
Fixed assets 1900 2500 600 31.5789474
Current assets
cash and cash equalents 40 100 60 150
accounts recevable 300 1500 1200 400
Inventories 320 1500 1180 368.75
Total 2560 5600 3040 118.75
Equity and Liabilities
Equity share capital ( shares of rs 10 each) 1200 1600 400 33.3333333
Reseves and surplus 364 1036 672 184.615385
Longterm borrowings 736 1236 500 67.9347826
Current liabilities 260 1728 1468 564.615385
Total 2560 5600 3040 118.75
1 to March 31(In thousands) -Comaprative
2013-14 2014-15 Change percentage
Sales
Cash 480 800 320 66.66667
Credit 4320 7200 2880 66.66667
Total sales 4800 8000 3200 66.66667
Cost of goods sold 2832 4800 1968 69.49153
Gross profit 1968 3200 1232 62.60163
Operating expenses
General,administration and selling 450 1000 550 122.2222
Depriciation 400 660 260 65
Interest expenses(on borrowings) 158 340 182 115.1899
Profit before tax 960 1200 240 25
Tax @30% 288 360 72 25
Profit after tax 672 840 168 25

ds)
2013-14 2014-15 Change Percentage
Assets
Fixed assets 2500 4700 2200 88
Current assets
cash and cash equalents 100 106 6 6
accounts recevable 1500 2100 600 40
Inventories 1500 2250 750 50
Total 5600 9156 3556 63.5
Equity and Liabilities
Equity share capital ( shares of rs 10 each 1600 2000 400 25
Reseves and surplus 1036 1876 840 81.08108
Longterm borrowings 1236 2500 1264 102.2654
Current liabilities 1728 2780 1052 60.87963
Total 5600 9156 3556 63.5
Common size (Income s

2012-13 2013-14 Percentage(2012-13)


Sales
Total sales 2000 4800 100
Cost of goods sold 1240 2832 62
Gross profit 760 1968 38
Operating expenses
General,administration and selling 80 450 4
Depriciation 100 400 5
Interest expenses(on borrowings) 60 158 3
Profit before tax 520 960 26
Tax @30% 156 288 7.8
Profit after tax 364 672 18.2
Balance sheet(in thou
2012-13 2013-14 Percentage(2012-13)
Assets
Fixed assets 1900 2500 74.21875
Current assets
cash and cash equalents 40 100 1.5625
accounts recievable 300 1500 11.71875
Inventories 320 1500 12.5
Total(assets) 2560 5600 100
Equity and Liabilities
Equity share capital ( shares of rs 10 eac 1200 1600 46.875
Reseves and surplus 364 1036 14.21875
Longterm borrowings 736 1236 28.75
Current liabilities 260 1728 10.15625
Total 2560 5600 100
Common size (Income statemet )

Percenrage(2013-14)

100
59
41

9.375
8.3333333333
3.2916666667
20
6
14
Balance sheet(in thousands )
Percentage(2013-14)

44.6428571429

1.7857142857
26.7857142857
26.7857142857
100

28.5714285714
18.5
22.0714285714
30.8571428571
100
2013-14 2014-15 Percentage(2013-14) Percenatge(2014-15)
Sales
Total sales 4800 8000 100 100
Cost of goods sold 2832 4800 59 60
Gross profit 1968 3200 41 40
Operating expenses
General,administration and selling 450 1000 9.375 12.5
Depriciation 400 660 8.3333333333 8.25
Interest expenses(on borrowings) 158 340 3.2916666667 4.25
Profit before tax 960 1200 20 15
Tax @30% 288 360 6 4.5
Profit after tax 672 840 14 10.5

2013-14 2014-15 Percentage(2013-14) Percentage(2014-15


Assets
Fixed assets 2500 4700 44.6428571429 51.3324595893
Current assets
cash and cash equalents 100 106 1.7857142857 1.1577107907
accounts recievable 1500 2100 26.7857142857 22.9357798165
Inventories 1500 2250 26.7857142857 24.5740498034
Total(assets) 5600 9156 100 100
Equity and Liabilities
Equity share capital ( shares of rs 10 each) 1600 2000 28.5714285714 21.8435998253
Reseves and surplus 1036 1876 18.5 20.4892966361
Longterm borrowings 1236 2500 22.0714285714 27.3044997816
Current liabilities 1728 2780 30.8571428571 30.3626037571
Total 5600 9156 100 100
2012-13 2013-2014 2014-15
Current ratio 2.538:1 1.79:1 1.60:1
Cash ratio 0.153:1 0.05:1 0.038:1
Debt to asset ratio 1:01 1:01 1:01
Long term debt to asset ratio 0.28:1 0.2207:1 0.27:1
Debt to equity ratio 2.133:1 3.5:1 4.57:1
Financial leverage 2.13:1 3.5:1 4.57:1
Interest coverage ratio 9.66:1 7.07:1 4.5:1
Gross profit margin 0.38 0.41 0.4
Pretax profit margin 0.26 0.2 0.15
Net profit margin 0.182 0.14 0.105
Return on assets 0.12 0.12 0.09
Return on equity 0.3033 0.42 0.42

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