OR Income statement of Bajaj Limited for the year ended 31st March, 2021 and 31st March, 2022 is given below. Prepare comparative Income statement :Particulars31st March 2021 (₹)31st March, 2022 (₹)Sales7,00,0009,00,000Less : Cost of Sales4,00,0005,5…

Answer: Comparative Income Statement of Bajaj Limited for the years ended 31st March, 2021 and 2022

Working: Percentage change = \(\frac{\text{Absolute change}}{\text{Previous year amount}}\times 100\). For example, sales \(\frac{2{,}00{,}000}{7{,}00{,}000}\times100 = 28.57\%\); indirect expenses \(\frac{-20{,}000}{60{,}000}\times100 = -33.33\%\). Figures in brackets show a decrease.

Interpretation: Sales rose by 28.57% but cost of sales rose faster (37.5%), so gross profit increased only 16.67%. A 33.33% cut in indirect expenses raised net profit before and after tax by 29.17%.