2. Sunrise Company's balance sheet on March 31, 2019 and 2018 and statement of profit and loss for the year ended March 31, 2019 and 2018 are as follows: 2019 (RS) 2018 (RS) Sunrise Company Limited Balance Sheet, March 31 Description Assets Non-current assets Property, plant and equipment Non-current investments Current assets Inventories Trade receivables Cash and cash equivalents 675,000 25,000 650,000 25,000 42,500 75,000 62,500 35,000 67,500 50,000 37,500 917,500 7,500 835,000 Other current assets Total assets Equity and Liabilities Equity Equity share capital Reserves and Surplus Non-current liabilities Long Term Borrowings Current liabilities Trade payables Total equity and liabilities 500,000 187,500 500,000 127,500 142,500 125,000 87,500 917,500 82,500 835,000 Sunrise Company Limited Statement of Profit and Loss For the year ended March 31 Net Sales Cost of goods sold Gross Profit Selling and administrative expenses Profit before interest and tax Interest expense Profit before tax Income tax Profit after tax 2019 (RS) 1,500,000 1,050,000 450,000 195,000 255,000 45,000 210,000 100,000 110,000 2018 (RS) 1,275,000 1,025,000 250,000 175,000 75,000 22,500 52,500 22,500 30,000 Additional Information: Market price per share Dividend per share Earnings per share 2019 (RS) 2,200.00 25.00 55.00 2018 (Rs) 300.00 12.50 15.00 On March 31, 2017 the company had inventories of Rs 32,500, receivables of Rs 50,000, total assets of Rs 675,000 and equity of Rs 622,500. Required: 1. Prepare a horizontal analysis of the statement of profit and loss and balance sheet showing amount and percentage changes from 2018 to 2019. [10 Marks] 2. Prepare a common size statement of profit and loss and balance sheet. (10 Marks] 3. Comment on the results found in Requirements 1 and 2. (5 Marks) 4. Compute profitability, liquidity, solvency and capital market standing ratios. [12 Marks] 5. Using the ratios computed in Requirement 4 above, evaluate company's profitability, liquidity, solvency and capital market standing. [8 Marks) 2. Sunrise Company's balance sheet on March 31, 2019 and 2018 and statement of profit and loss for the year ended March 31, 2019 and 2018 are as follows: 2019 (RS) 2018 (RS) Sunrise Company Limited Balance Sheet, March 31 Description Assets Non-current assets Property, plant and equipment Non-current investments Current assets Inventories Trade receivables Cash and cash equivalents 675,000 25,000 650,000 25,000 42,500 75,000 62,500 35,000 67,500 50,000 37,500 917,500 7,500 835,000 Other current assets Total assets Equity and Liabilities Equity Equity share capital Reserves and Surplus Non-current liabilities Long Term Borrowings Current liabilities Trade payables Total equity and liabilities 500,000 187,500 500,000 127,500 142,500 125,000 87,500 917,500 82,500 835,000 Sunrise Company Limited Statement of Profit and Loss For the year ended March 31 Net Sales Cost of goods sold Gross Profit Selling and administrative expenses Profit before interest and tax Interest expense Profit before tax Income tax Profit after tax 2019 (RS) 1,500,000 1,050,000 450,000 195,000 255,000 45,000 210,000 100,000 110,000 2018 (RS) 1,275,000 1,025,000 250,000 175,000 75,000 22,500 52,500 22,500 30,000 Additional Information: Market price per share Dividend per share Earnings per share 2019 (RS) 2,200.00 25.00 55.00 2018 (Rs) 300.00 12.50 15.00 On March 31, 2017 the company had inventories of Rs 32,500, receivables of Rs 50,000, total assets of Rs 675,000 and equity of Rs 622,500. Required: 1. Prepare a horizontal analysis of the statement of profit and loss and balance sheet showing amount and percentage changes from 2018 to 2019. [10 Marks] 2. Prepare a common size statement of profit and loss and balance sheet. (10 Marks] 3. Comment on the results found in Requirements 1 and 2. (5 Marks) 4. Compute profitability, liquidity, solvency and capital market standing ratios. [12 Marks] 5. Using the ratios computed in Requirement 4 above, evaluate company's profitability, liquidity, solvency and capital market standing. [8 Marks)