Multi-Step and Common-Sized Analysis and Analytical Balance Sheet Refer to Exercise 1 of both on conversion of balance sheet and profit and loss account respectively of Shashaank Industries Ltd. in the vertical form, as done by you.
Required
- Convert the vertical profit and loss account of the company into multi-step form to the extent possible.
- What is the information value added by the multi-step income statement over the vertical statement?
- Prepare a common-sized invome statement.
- What is the information value added by common-sized income statement over the multi-step income statement?
- Convert the vertical Balance sheet of the company in analytical form.
- Establish on the basis of 5 above:
- How much the equityowners own in total in the company?
- How much the company has to pay to the outsiders?
- How much is the residual claim of the equityowners?