Financial Accounting and Analysis - NMIMS June 2018 Internal Assignment

Need Answer Sheet of this Question paper WWW.MBAASSIGNMENTSOLUTIONS.COM Email ID: [email protected] PRAKASH - 09741410271/ 08722788493 FINANCIAL ACCOUNTING AND ANALYSIS Q1. From the following information of A star Ltd. prepare the Cash Flow statement for the year ended 2017 and 2018 as per AS – 3. Liabilities 31-3-2017 31-3-2018 Assets 31-3-2017 31-3-2018 Equity share capital 220,000 250,000 Machinery 200,000 230,000 9% Preference Share Capital 100,000 110,000 Building 150,000 176,000 Securities Premium 20,000 26,000 Land 18,000 18,000 Profit & Loss A/c 104,000 134,000 Stock 84,000 98,000 5% Debentures 70,000 64,000 Debtors 38,000 38,000 Creditors 38,000 46,000 Bills Receivable 42,000 62,000 Bills Payable 5,000 4,000 Cash 42,000 32,000 Provision for Tax 10,000 12,000 Dividends payable 7,000 8,000 574,000 654,000 574,000 654,000 Q2. Balance Sheet for JK Ltd. for the year ended 31st March 2016 & 2017 Liabilities 2016 2017 Assets 2016 2017 Equity Share Capital 200,000 200,000 Land 50,000 50,000 9% Preference Share Capital 150,000 150,000 Building 150,000 135,000 Reserves 100,000 122,500 Plant & Machinery 150,000 135,000 17% Debentures 50,000 75,000 Furniture 50,000 70,000 Creditors 75,000 100,000 Stock 100,000 150,000 Bills Payable 25,000 37,500 Debtors 100,000 150,000 Tax payable 50,000 75,000 Cash 50,000 70,000 650000 760000 650000 760000 Profit & Loss Account for JK Ltd. for the year ended 31st March 2016 and 2017 Particulars 2016 2017 Particulars 2016 2017 To Cost of goods sold 300,000 375,000 By Sales 400,000 500,000 To Operating Expenses Administrative 6,500 7,250 Selling 10,000 10,000 To Interest on Debentures 8,500 12,750 To Net Profit 75,000 95,000 400,000 500,000 400,000 500,000 Using the tool of commonsize financial statement analysis, comment about the improvement or decline of financial performance of the company. Q3. The following extracts are available from the financial statements of companies V ltd. and J Ltd. for the year ended 31st March 2017: (Rs. In Lakhs) Particulars V Ltd. J Ltd. Revenue from operations 1,500 6,000 Manufacturing cost 900 4,050 Interest paid 105 375 Depreciation 135 675 Selling expenses 135 225 Income Tax 90 225 Non-operating income 45 285 Dividend paid 120 600 Fixed Assets 1,500 7,350 Current Assets 525 2,250 Current Liabilities 375 2100 Debentures 600 3,300 Reserves 450 1,200 Share Capital 600 3,000 From the above information answer the following questions with the help of suitable ratios: 3 a) • Which company has better solvency using current ratio and share value using earning per share? • Which company would you recommend for investment? Justify. 3 b) • Which company has efficiently employed capital using return on capital employed and better operational efficiency using operating profit ratio? • Which company would you recommend for investment? Justify. Need Answer Sheet of this Question paper WWW.MBAASSIGNMENTSOLUTIONS.COM Email ID: [email protected] PRAKASH - 09741410271/ 08722788493