analyst can quickly ascertain whether sales are increasing or decreasing and by how much amount or by how much percentage. Similarly, analysis can be made for other items also. Comparative Balance Sheet (CBS): The CBS shows the different assets and liabilities of the firm on different dates to make comparisons of absolute t16 balances and also of changes if any, from one date to another. The CBS may be helpful in analyzing and evaluating the financial position of the firm over a period of number of years. The preparation of CFS can be explained with the help of Example 2.1. Example 2.1: Following are the IS and BS of ABC & Co. for the year 2003 and 2004, Prepare the CBS and CIS for these two years. Income Statements for the year 2003 and 2004 (Figures in Rs.) 2003 2004 Particulars 2003 2004 Particulars By Net Sales 400000 500000 To Cost of good sold 300000 375000 To General Expenses 10000 10000 To Selling Expenses 15000 20000 To Net Profit 75000 95000 400000 500000 400000 500000 Balance Sheets as on December 31 (Figures in Rs.) . 2004 Liabilities Capital 2003 350000 100000 2003 50000 350000 122500 75000 150000 Assets Land Building Plant Furniture Reserves Secured Loans Creditors Outstanding Expenses 2004 50000 135000 135000 70000 70000 150000 50000 100000 137000 50000 50000 50000 75000 Cash Debtors Stores 100000 100000 150000 150000 650000 760000 650000 760000