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Sunrise Companys balance sheet on March 31, 2019 and 2018 and statement of profit and loss for the year ended March 31, 2019 and 2018

Sunrise Companys 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:

Sunrise Company Limited

Balance Sheet, March 31

Description

2019 (Rs)

2018 (Rs)

Assets

Non-current assets

Property, plant and equipment

675,000

650,000

Non-current investments

25,000

25,000

Current assets

Inventories

42,500

35,000

Trade receivables

75,000

67,500

Cash and cash equivalents

62,500

50,000

Other current assets

37,500

7,500

Total assets

917,500

835,000

Equity and Liabilities

Equity

Equity share capital

500,000

500,000

Reserves and Surplus

187,500

127,500

Non-current liabilities

Long Term Borrowings

142,500

125,000

Current liabilities

Trade payables

87,500

82,500

Total equity and liabilities

917,500

835,000

Sunrise Company Limited Statement of Profit and Loss

For the year ended March 31

2019 (Rs)

2018 (Rs)

Net Sales

1,500,000

1,275,000

Cost of goods sold

1,050,000

1,025,000

Gross Profit

450,000

250,000

Selling and administrative expenses

195,000

175,000

Profit before interest and tax

255,000

75,000

Interest expense

45,000

22,500

Profit before tax

210,000

52,500

Income tax

100,000

22,500

Profit after tax

110,000

30,000

Additional Information:

2019 (Rs)

2018 (Rs)

Market price per share

2,200.00

300.00

Dividend per share

25.00

12.50

Earnings per share

55.00

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.

  1. Prepare a horizontal analysis of the statement of profit and loss and balance sheet showing amount and percentage changes from 2018 to 2019.
  2. Prepare a common size statement of profit and loss and balance sheet.
  3. Comment on the results found in Requirements 1 and 2.
  4. Compute profitability, liquidity, solvency and capital market standing ratios.
  5. Using the ratios computed in Requirement 4 above, evaluate companys profitability, liquidity, solvency and capital market standing.

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