Question

The accompanying balance sheet and profit and Loss account related to SUMO logistics Private Limited. Convert these into Common Size Statements.
Previous Year = 2010 , current Year = 2011 $\text{(Rs. '000)}\begin{array}{ccc}\text{Particulars}& \text{Previous}& \text{Current}\\ & \text{Year}& \text{Year}\\ \text{Liabilities}& & \\ \text{Equity Share Capital ( of Rs 10 each)}& 240& 240\\ \text{General Reserve}& 96& 182\\ \text{Long Term Loans}& 182& 169.5\\ \text{Creditors}& 67& 52\\ \text{Outstanding Expenses}& 6& \\ \text{Other Current Liabilities}& 9& 6.5\\ \text{Total Liabilities}& \overline{\underset{–}{600}}& \overline{\underset{–}{650}}\\ \text{Assets}& & \\ \text{Plant Assets Net of Accumulated Less Depreciation}& 402& 390\\ \text{Cash}& 54& 78\\ \text{Debtors}& 60& 65\\ \text{Inventories}& 84& 117\\ \text{Total Assets}& \underset{–}{\underset{–}{600}}& \underset{–}{\underset{–}{650}}\end{array}$

$\text{Income Statement}\text{for the year ended}\text{Rs ~000}\begin{array}{ccc}\text{Particulars}& \text{Previous}& \text{Current}\\ & \text{Year}& \text{Year}\\ \text{Gross Sales}& 370& 480\\ \text{(-) Return}& \left(20\right)& \left(30\right)\\ \text{Net Sales}& \overline{\underset{–}{350}}& \overline{\underset{–}{\left(450\right)}}\\ \text{(-) Cost of Goods Sold}& \underset{–}{\left(190\right)}& \underset{–}{\left(215\right))}\\ \text{Gross Profit}& 160& \left(235\right)\\ \text{(-) Selling General and Administration}& & \\ \text{Expenses}& \left(50\right)& \left(72\right)\\ \text{Operating Profit}& \overline{110}& \overline{163}\\ \text{(-) Interest Expenses}& \left(20\right)& \left(17\right)\\ \text{Earnings Before Tax}& \overline{90}& \overline{146}\\ \text{(-)Taxes}& \left(45\right)& \left(73\right)\\ \text{Earnings After Tax}& \underset{–}{\underset{–}{45}}& \underset{–}{\underset{–}{73}}\end{array}$

Answer 1

$\text{Common Size Balance Sheet of SUMO Logistics Private Limited}\text{as on 2010 and 2011}\begin{array}{ccccc}\text{Particulars}& 2010& & 2011& \\ & \text{(Rs)}& \%& \left(Rs\right)& \%\\ \text{Liabilities}& & & & \\ \text{Equity Share Capital (of Rs 10 each)}& 240& 40& 240& 36.92\\ \text{General Reserve}& 96& 16& 182& 28\\ \text{Long Term Loan}& 186& 30.33& 169.5& 26.08\\ \text{Creditors}& 67& 11.17& 52& 8\\ \text{Outstanding Expenses}& 6& 1& & \\ \text{Other Current Liabilities}& 9& 1.5& 6.5& 1\\ \text{Total Liabilities}& \overline{\underset{–}{\underset{–}{600}}}& \overline{\underset{–}{\underset{–}{100}}}& \overline{\underset{–}{\underset{–}{650}}}& \overline{\underset{–}{\underset{–}{100}}}\\ \text{Assets}& & & & \\ \text{Plant less Accumulated Depreciation}& 402& 67& 390& 60\\ \text{Cash}& 54& 9& 78& 12\\ \text{Debtors}& 60& 10& 65& 10\\ \text{Inventories}& 84& 14& 117& 18\\ \text{Total Assets}& \underset{–}{\underset{–}{600}}& \underset{–}{\underset{–}{100}}& \underset{–}{\underset{–}{650}}& \underset{–}{\underset{–}{100}}\end{array}$
$\text{Common Size Income Statement of SUMO Logistics Private Limited}\text{for the year ended 2010 and 2011}\begin{array}{ccccc}\text{Particulars}& 2010& & 2011& \\ & \text{(Rs. ' 000)}& \%& (Rs.{}^{\prime }000)& \%\\ \text{Gross Sales}& 370& 105.71& 480& 106.67\\ \text{(-) Return}& \left(20\right)& \left(5.71\right)& \left(30\right)& \left(6.67\right)\\ \text{Net Sales}& \overline{350}& \overline{100.00}& \overline{450}& \overline{100.00}\\ \text{(-) Cost of Goods Sold}& \left(190\right)& \left(54.29\right)& \left(215\right)& \left(47.77\right)\\ \text{Gross Profit}& \overline{160}& \overline{45.71}& \overline{235}& \overline{52.23}\\ \text{(-) Selling General and Administration Expenses}& \left(50\right)& \left(14.28\right)& \left(72\right)& \left(16.00\right)\\ \text{Operating Profit}& \overline{110}& \overline{31.43}& \overline{163}& \overline{36.23}\\ \text{(-) Interest Expenses}& \left(20\right)& \left(5.72\right)& \left(17\right)& \left(3.77\right)\\ \text{Earning Before Tax}& \overline{90}& \overline{25.71}& \overline{146}& \overline{32.46}\\ \text{(-) Taxes}& \underset{–}{\left(45\right)}& \underset{–}{\left(12.86\right)}& \underset{–}{\left(73\right)}& \underset{–}{\left(16.23\right)}\\ \text{Earnings After Tax}& \underset{–}{\underset{–}{45}}& \underset{–}{\underset{–}{12.86}}& \underset{–}{\underset{–}{73}}& \underset{–}{\underset{–}{16.23}}\end{array}$